FPIs invested over ₹13,100cr in Indian equities this week
What's the story
Foreign portfolio investors (FPIs) have made a net investment of ₹13,107.54 crore in the Indian stock market during the week of June 23-27. The data was released by the National Securities Depository Limited (NSDL). This strong inflow suggests a surge in investor confidence, with heavy buying on Monday as well as Friday.
Investment total
Net investment by FPIs in June
With the latest inflow, the total net investment by FPIs in June now stands at ₹8,915 crore. This marks a significant improvement in investor sentiment toward Indian equities. The positive shift comes after geopolitical tensions between the US, Iran, and Israel eased recently. The improved global sentiment has made investors view emerging markets like India more favorably.
Economic factors
RBI's rate cut and controlled inflation
The Reserve Bank of India (RBI) recently cut interest rates by 50 basis points in its latest Monetary Policy Committee (MPC) meeting. The move is expected to spur economic growth and further boost investor confidence. Additionally, inflation in the Indian economy remains under control, adding to the positive sentiment among foreign investors.
Appeal
Factors influencing short-term outlook of FPIs
The combo of global stability, policy support, and strong macroeconomic indicators has made India an attractive destination for foreign investors. Key domestic drivers like macroeconomic indicators, institutional buying support, and sector-specific triggers like monsoon progress, consumption trends, and infrastructure push are tipped to shape short-term FPI behavior in the Indian stock market.