FPIs infuse ₹26,565 crore into Indian equities this June
Foreign portfolio investors (FPIs) have made a net infusion of ₹26,565 crore into Indian equities in June, as per the depository data, marking a shift from the previous two months of net outflow. FPIs pulled out ₹25,586 crore in May due to poll jitters. Similarly, over ₹8,700 crore outflow was recorded in April. The latest change is attributed to political stability and a sharp market rebound. The sectors favored by FPIs include financial, consumer, auto, capital goods, and real estate.
FPIs concentrated on specific stocks
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that political stability and the sharp rebound in markets, aided by steady domestic institutional investors buying, have prompted FPIs to turn buyers in India. FPI buying has been focused on specific stocks rather than being widespread. Vipul Bhowar, Director, Listed Investments, Waterfield Advisors, states, "Looking ahead, attention will gradually shift towards the budget and Q1 FY25 earnings, which could determine the sustainability of FPI flows."
Investments in Indian debt market in June
In addition to equities, FPIs also invested ₹14,955 crore in the Indian debt market in June. This brings the total FPI investment in the debt market to ₹68,624 crore so far in 2024. The inclusion of India in the JP Morgan Bond Index is seen as a positive development, that will reduce borrowing costs for the government and corporates, which is expected to positively impact both equity and debt markets.
