Foreign Portfolio Investors Infuse Rs 15,420 Crore in Indian Equity Market
New Delhi: According to data from the National Securities Depository, foreign portfolio investors have injected Rs 15,420 crore into the Indian equity market this week.
The net investment by foreign portfolio investors (FPI) has reached Rs 30,772 crore so far in July, indicating strong buying activity by foreign investors in the Indian markets.
This year, foreign investors have purchased equities worth Rs 1,30,138 crore.
“FPI flows are expected to remain volatile, with strong market performance this week due to positive earnings and large-cap commentary. India, Brazil, Indonesia, Malaysia, Philippines, and South Korea saw inflows, while Taiwan, Thailand, and Vietnam saw outflows,” said Shrikant Chouhan, Head of Equity Research at Kotak Securities.
Internationally, foreign investors injected around $585 million in Brazil, $300 million in Indonesia, $324 million in Malaysia, and $2085 million in South Korea this week. Taiwan witnessed an outflow of $5325 million, while Vietnam saw foreign investment selling worth $278 million.
Market experts believe that foreign investors are attracted to the Indian markets due to a weakening dollar and bond yields. If this trend continues, foreign investment is expected to rise further.
“During the fortnight ending 15th July, FPIs bought autos, capital goods, healthcare, IT, telecom, and oil and gas. Notably, there was a lack of buying in financial services, partially explaining the sector’s poor performance in July. If the current trend of dollar and bond yield weakness continues, FPIs are likely to increase their market activity,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Foreign Institutional investors were sellers in January, April, and May, selling equities worth around Rs 60,000 crores. However, they were buyers in February, March, and June, with cumulative purchases totaling Rs 63,200 crores.
