FPIs Infuse Rs 26,565 Crore In Indian Equities In June Driven By Political Stability

Earlier in March, the FPI inflows in equities stood at Rs 35,098 crore, while it touched Rs 1,539 crore in February. In April, the investors dumped Indian equities worth more than Rs 8,700 crore

Foreign portfolio investors (FPIs) turned bullish on Indian equities in June as the investors infused Rs 26,565 crore in the segment in the month. This inflow was driven by political stability and a sharp recovery in the markets.

This inflow followed two months of net outflow for the investors, reported PTI. During the same period, the investors poured in Rs 14,955 crore in the debt market, official data from the depositories revealed.

Sharing an outlook, Vipul Bhowar, Director, Listed Investments, Waterfield Advisors, noted, “Looking ahead, attention will gradually shift towards the budget and Q1 FY25 earnings, which could determine the sustainability of FPI flows.”

Earlier in March, the FPI inflows in equities stood at Rs 35,098 crore, while it touched Rs 1,539 crore in February. In April, the investors dumped Indian equities worth more than Rs 8,700 crore, while in May the net outflow stood at Rs 25,586 crore. This outflow was attributed to worries regarding changes in India’s tax treaty with Mauritius.

V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, stated, “Political stability, despite the BJP not getting a majority on its own, and the sharp rebound in markets aided by steady domestic institutional investors (DIIs) buying and aggressive retail buying, has forced the FPIs to turn buyers in India.”

Bhowar further pointed out that the FPI buying activity has been focused on certain specific stocks instead of spreading it out across the market or sectors. “This is because Indian equities are still considered overvalued by FPIs,” he added.

Kislay Upadhyay, smallcase Manager and Founder, Fidelfolio, explained, “They are favouring the financial, auto, capital goods, real estate, and select consumer sectors.With government stability assured, impressive GDP performance and forecasts, stable consumer price index, ample forex reserves, and robust banking sector health, I anticipate a steady and substantial FPI inflow.”