The robust Foreign Portfolio Investor (FPI) inflows observed in December 2023, totaling Rs 58,372 crore, have experienced a deceleration in the early days of January 2024.
In December, FPIs displayed significant interest in financial services and IT, along with buying activities in sectors such as autos, capital goods, oil and gas, and telecom.
Anticipating a continuation of this trend, Vijayakumar suggests that the decline in US interest rates expected in 2024 may prompt FPIs to increase their purchases, particularly in the early months leading up to the general elections. Additionally, FPI investment in debt is likely to gain momentum in the coming months.