May has seen the return of foreign portfolio investors (FPIs) in selective fashion to Indian equity. Net purchases of equity in May ran at above Rs 9,000 crore (cr) by last weekend. Most of the buying was in pharma and chemicals, with some purchases in the information technology (IT) sector. At the same time, FPIs have sold Rs 20,000 cr in rupee debt and also opened new short positions in derivatives. This is an improvement on April, which saw FPI sales of Rs 6,884 cr (equity) and Rs 12,552 cr (debt).
Since April, the FPIs have sold a cumulative Rs
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