In the first half of July, foreign investors infused Rs 15,352 crore into Indian equities driven by the government’s commitment to ongoing reforms, low US Federal rates, and strong domestic demand.
As per the data with the depositories, foreign portfolio investors (FPIs) have made a net inflow of Rs 15,352 crore in equities this till July 12.
This came following an inflow of Rs 26,565 crore in equities in June on the back of political stability and a sharp rebound in markets.
In May, FPIs withdrew Rs 25,586 crore on poll jitters and over Rs 8,700 crore in April on concerns over a tweak in India’s tax treaty with Mauritius and a sustained rise in US bond yields.
Apart from equities, FPIs invested Rs 8,484 crore in the debt market during the period under review pushing the debt tally to Rs 77,109 crore this year so far.
The key characteristic of institutional equity flows into the Indian market is the unpredictable nature of FPI flows compared to the consistent growth of domestic institutional investors (DIIs) including mutual funds’ flow.
DIIs have been consistent buyers every month in 2024, while FPIs have fluctuated between buying and selling.
FPIs sold a cumulative amount of Rs 60,000 crore in January, April, and May but bought Rs 63,200 crore in February, March, and June together.