FPIs Invest INR 13,269 Crore in Indian Markets

In June 2021, foreign portfolio investors (FPIs) turned net buyers by investing Rs. 13,269 crore (US$ 1.78 billion) into the Indian markets.

According to depositories data, between June 1, 2021, and June 30, 2021, FPIs invested Rs. 17,215 crore (US$ 2.31 billion) in equities .

Morningstar India Associate Director (Manager Research), Mr. Himanshu Srivastava said, “This could be associated with the improvement in investor’s confidence on the economy backed by constantly dropping coronavirus cases in the country and anticipation for an early opening of the economy.”

He added, “The investor’s improved sentiments, combined with robust quarterly results and an upbeat earnings growth outlook over the long term, improved FPI attentiveness in Indian equities.”

In June 2021, net investment stood at Rs. 13,269 crore (US$ 1.78 billion).

In May 2021, overseas investors had pulled out Rs. 2,666 crore (US$ 357.88 million) and Rs 9,435 crore (US$ 1.27 billion) in April 2021.

LKP Securities Head (Research), Mr. S Ranganathan said, “June 2021 recorded a gradual unlocking of the economic activities. FPI’s bought stocks across sectors like insurance, fintech, information technology, which were broad-based across large-caps and mid-caps.”

Kotak Securities Executive Vice-President (Equity Technical Research), Mr. Shrikant Chouhan said “Except for Taiwan, South Korea and Philippines, most emerging countries and Asian markets have recorded FPI inflows this month to date.”

He added, among emerging markets, India recorded the highest FPI inflows of US$ 1,498 million, followed by Indonesia (US$ 342 million). In terms of FPI outflows, Taiwan led the market with US$ 1,814 million of FPI outflows, followed by South Korea at US$ 792 million and Philippines at US$ 79 million.

Geojit Financial Services Chief Investment Strategist, Mr. V K Vijayakumar said, “Going forward, FPIs are expected to book profits in India. However, they are improbable to sell insistently in India, in spite of better valuations, since India Inc is expected to account brilliant figures in FY22.”

Source: IBEF