According to the data, FPIs invested a net Rs 9,788 crore in Indian equities during June 1-9.
Earlier, in the January-February period, FPIs had withdrawn more than Rs 34,000 crore.
Foreign portfolio investors (FPIs) continued their buying trend in Indian equities and pumped in around Rs 9,800 crore so far this month on strong economic growth and attractive valuations of stocks.
This nine-month high investment in equities stood at Rs 43,838 crore in May, Rs 11,631 crore in April and Rs 7,936 crore in March, depository data showed.
Earlier, in the January-February period, FPIs had withdrawn more than Rs 34,000 crore.
Moreover, the outlook for FPI inflows for the rest of June is positive as the Reserve Bank of India (RBI) has indicated that it will not hike interest rates anytime soon, which is a positive sign for equity markets, Mayank Mehra , said smallcase manager and principal partner at financial consultancy Craving Alpha.
However, valuations could become a concern as Indian markets continue to rally and stricter regulatory norms may also curb foreign fund flows into India to some extent, said Himanshu Srivastava, associate director-manager research at Morningstar India.
According to the data, FPIs invested a net Rs 9,788 crore in Indian equities during June 1-9.
Mehra said the inflow can be attributed to very strong economic growth, relatively attractive valuations of Indian stocks compared to other large emerging markets and confidence about the government’s positive policy outlook.
Morningstar India’s Srivastava said the agreement on the US debt ceiling has reached its conclusion, which has had a positive impact on Indian markets as well as overall investor sentiments.
Also, foreign investors have been focusing on Indian equities for a while now, given that it has shown resilience in times of uncertainty and as India is better positioned as an economy as compared to other peer markets, they Said.
In terms of sectors, foreign investors may continue to buy in financials and auto as the prospects of these sectors look promising.
Apart from equities, FPIs invested Rs 592 crore in the debt market during the period under review owing to the attractive returns offered by Indian debt securities.
So far in 2023, foreign investors have invested Rs 39,000 crore in Indian equity and Rs 8,100 crore in the debt market.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – PTI,
