FPIs pour ₹5,260cr into Indian equities, signaling strong market confidence
What's the story
Foreign portfolio investors (FPIs) have pumped a whopping ₹5,260 crore into Indian equities between July 7 and July 11, indicating strong investor confidence in Indian markets. The data from the National Securities Depository Limited (NSDL) shows that FPIs were net buyers on all trading days during this period. The highest single-day investment was recorded on Tuesday when FPIs invested ₹2,771 crore in equities.
Monthly overview
Total net investment for July so far
With the inflows this week, the total net investment by foreign investors in the equity segment for July has reached ₹3,839 crore. This is a major turnaround from last week's selling activity. Siddhartha Khemka of Motilal Oswal Financial Services told ANI that FII activity may be muted next week due to possible market volatility amid uncertainty over trade negotiations with the US.
Market watch
What did Khemka say?
Khemka also said that investors will closely watch key domestic macroeconomic indicators such as the Consumer Price Index (CPI) and Wholesale Price Index (WPI) inflation data. They will also keep an eye on Q1 earnings and any updates related to the India-US trade deal. Despite global uncertainties, India continues to attract foreign investments due to a combination of supportive domestic policies and strong macroeconomic fundamentals.
Investment trends
Equity outflow and inflow in previous months
In June, FPIs had invested ₹14,590 crore in the Indian equity segment. May was even better with foreign investors pumping in ₹19,860 crore, the highest monthly inflow for the year so far. However, earlier this year, FPIs had pulled out significant amounts from Indian equities. They sold stocks worth ₹3,973 crore in March and offloaded equities worth ₹78,027 crore in January and ₹34,574 crore in February.