Foreign portfolio investors (FPIs) continued to maintain a bullish outlook in Indian equities and infused more than Rs 33,600 crore in the segment in the month so far, official data from the depositories revealed. Meanwhile, as of July 26, the investors injected Rs 19,223 crore in the Indian debt market, the data showed.
This inflow was attributed to the expectation of continued policy reforms, consistent economic growth, and an earnings season that has fared better than expectations, reported PTI.
However, during the last three trading sessions, from July 24-26, the investors withdrew more than Rs 7,200 crore after the government increased taxes on Futures and Options trades (F&O) and capital gains from equity investments in Budget 2024.
Nimesh Chandan, CIO, Bajaj Finserv AMC, noted, “Market experts believe that Indian equity is well-positioned for the year to attract foreign investments. However, there may be some monthly volatility due to short-term news. Indian equity market and bond market are favourably placed for the year. This should attract foreign flows into the country. There could be some volatility in the flows on a month-on-month basis due to short-term news flows.”
The depository data revealed that foreign portfolio investors injected Rs 33,688 crore in the equities in the month so far.
Himanshu Srivastava, Associate Director - Manager Research, Morningstar Investment Research India, further stated that India remains on a strong footing economically. The earnings season so far has helped improve the balance sheet for the corporate sector of the country and will help in enhancing investor confidence, the expert commented. “Upward revisions in India's GDP forecast by the IMF and ADB, and a slowdown in China work in India's favour,” he added. Notably, in the year so far, the debt tally stands at Rs 87,847 crore.