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FPIs Inject ₹2,420 Cr as Debt Routes Shine
31 Jan
Summary
- FPIs invested ₹2,420.47 crore on Friday, reversing recent outflows.
- Debt segments, particularly FAR and VRR, attracted significant FPI inflows.
- Despite debt inflows, FPIs continued to sell equities for the fourth day.
Foreign portfolio investors (FPIs) made a significant net investment of ₹2,420.47 crore on Friday, January 30. This inflow provided a welcome turnaround after three preceding days of substantial outflows from the Indian market.
The debt segment was the primary driver of this positive sentiment, attracting a total of ₹2,475.44 crore. Notably, the Debt-Fully Accessible Route (FAR) saw the highest inflows at ₹1,287.05 crore, closely followed by the Debt-Voluntary Retention Route (VRR), which garnered ₹1,165.63 crore.
Despite the strong performance in debt, FPIs continued to divest from equities for the fourth straight trading day, with net outflows amounting to ₹72.29 crore on Friday. The hybrid segment experienced modest inflows of ₹29.16 crore.
Looking at the broader week, which commenced on Tuesday, January 27, FPIs recorded net outflows of ₹2,599.33 crore across all segments. Equity outflows constituted the bulk of these withdrawals, totaling ₹2,363.61 crore for the shortened trading week.
Analysts suggest FPI flows are expected to remain volatile. Factors influencing these flows include global market performance, US Federal Reserve policy, geopolitical tensions, and currency movements. The Indian market's earnings season for Q3 FY26, which largely met expectations, also plays a role in FPI sentiment.
