REIT invests Rs 11,500 cr in Indian stocks in March

Foreign investors have invested Rs 11,500 crore in Indian equities so far this month, driven mainly by US firm GQG Partners’ heavy investment in Adani Group companies. Going forward, REITs could take a cautious stance in their approach in the coming days after the collapse of US banks – Silicon Valley Bank and Signature Bank – rattled sentiment in the market, experts said.

According to data from custodians, Foreign Portfolio Investors (REITs) invested Rs 11,495 crore in Indian stocks till March 17.

This came after a net outflow of Rs 5,294 crore in February and Rs 28,852 crore in January. Previously, REITs injected a net amount of Rs 11,119 crore in December, according to the data.

“This (the influx in March) includes the massive investment of Rs 15,446 crore by GQG in the four Adani stocks,” said VK Vijayakumar, chief investment strategist at Geojit Financial Services.

Other than that, REIT activity in equities represents a strong undercurrent of selling.

In calendar year 2023, REITs sold shares worth Rs 22,651 crore.

Himanshu Srivastava, Associate Director – Manager Research at Morningstar India, attributed the latest inflows to better prospects for Indian stocks over longer time frames. Although, like many other countries, India has also gone through a rate hike cycle given the high levels of inflation, it is still perceived to be relatively better positioned when it comes to macroeconomic conditions compared to other countries. markets.

On the other hand, REITs withdrew Rs 2,550 crore from debt markets during the reporting period.

In terms of investing in sectors, REITs have only been regular buyers of capital goods.

In financials, REITs alternated between buying and selling in different fortnights. Given that risk is the dominant market mood following U.S. bank failures and contagion fears, REITs are unlikely to become short-term buyers, said Vijayakumar of Geojit Financial Services.