The foreign investors injected Rs 30,772 crore into Indian equities so far in the month of July. This was driven by hopes of continued policy reforms, sustained economic growth and a better-than-expected earnings season.
As per the data with the depositories, Foreign Portfolio Investors (FPIs) have made a net inflow of Rs 30,772 crore in equities this month (till July 19).
This came following an inflow of Rs 26,565 crore in equities in the entire June driven by political stability and the sharp rebound in markets.
In May, the 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 13,573 crore in the debt market during the period under review. This has pushed the debt tally to Rs 82,197 crore this year so far.
According to the data, the flows to date in July 2024 were mixed for emerging markets. In addition to India, Brazil, Indonesia, Malaysia, the Philippines, and South Korea witnessed inflows. On the other hand, Taiwan, Thailand and Vietnam witnessed outflows.
Market experts believe that the foreign investors are investing in Indian markets amid a weakening in dollar and bond yields, and if this trend continues, foreign investment will continue as well.
Foreign Institutional investors were sellers in January, April, and May, cumulatively selling equities worth around Rs 60,000 crores. However, they were buyers in February, March, and June, with cumulative purchases amounting to Rs 63,200 crore.