Foreign Investors Pour Rs 7,962 Crore into Indian Market in July
Foreign Portfolio Investors (FPI) have infused Rs 7,962 crore in the Indian equity market in the first week of July, according to the National Securities Depository Limited (NSDL). This brings the total FPI investment in India to Rs 103,934 crore this year.
Other emerging markets also received substantial FPI inflows this month. Indonesia received USD 127 million, Malaysia received USD 81 million, the Philippines received USD 5 million, and South Korea received a record USD 927 million. However, Thailand and Vietnam saw outflows of USD 69 million and USD 68 million, respectively.
“Markets remained optimistic about strong government support for the economy, especially for the manufacturing sector, in the upcoming Union Budget. Market optimism continued to extend, with IT services finding favor ahead of the upcoming Q1FY25 earnings season. FPI flows are expected to remain volatile,” said Shrikant Chauhan, Head of Equity Research at Kotak Securities.
In June, FPIs turned net buyers in Indian markets after two months of selling, injecting a net investment of Rs 26,565 crore. This followed a withdrawal of Rs 25,586 crore in May and Rs 8,671 crore in April. The recent surge in FPI investments indicates renewed confidence in India’s market potential and economic outlook. Investors will now monitor the upcoming budget by the central government, and markets will react accordingly.
