FPIs Infuse Rs 15,352 Crore In Indian Equities In July So Far, Backed By Govt's Push For Reforms

In 2024, the domestic institutional investors (DIIs) have remained consistent buyers each month, whereas the FPIs have often oscillated between buying and selling

Foreign portfolio investors (FPIs) maintained their bullish outlook in Indian equities and infused Rs 15,352 crore in the segment in July so far, official data from the depositories revealed. As of July 12, the investors poured in Rs 8,484 crore in the Indian debt market, the data showed.

This inflow was attributed to the low US Federal rates and a robust demand at the domestic level, reported PTI. Experts noted that the government’s push for ongoing reforms also gave a boost to the market sentiment.

Commenting on the flows, Himanshu Srivastava, Associate Director - Manager Research, Morningstar Investment Research India, noted, “The upcoming Union Budget will be one of the most watched events by foreign investors to understand the government's plans for economic growth.”

This inflow followed June when investors poured in Rs 26,565 crore, backed by political stabiity and a strong recovery seen in the markets. 

Manoj Purohit, Partner and Leader - FS Tax, Tax and Regulatory Services, BDO India, explained that the government’s commitment to continue reforms has helped boost an optimistic sentiment in the market. 

“Additionally, the anticipation of a reform-oriented budget has also lifted investor sentiment. Better than expected earnings season so far has also worked towards building investor confidence,” Srivastava highlighted.

In 2024, the domestic institutional investors (DIIs) have remained consistent buyers each month, whereas the FPIs have often oscillated between buying and selling. During January, April, and May, the FPIs collectively offloaded Rs 60,000 crore, whereas during February, March, and June, the investors poured in Rs 63,200 crore.

Commenting on these flows, V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “The reason for this divergence is that FPI activity is influenced by external factors like US bond yields and valuations in other markets while DII activity is largely driven by domestic flows into the market.”