Foreign Investors Turn Buyers in Indian Equities
After two months of net outflows, foreign investors have turned buyers in June, infusing Rs 26,565 crore in Indian equities. This shift has been attributed to political stability and a sharp rebound in the markets.
Looking ahead, attention is expected to gradually shift towards the Budget and Q1 FY25 earnings, which could play a key role in determining the sustainability of Foreign Portfolio Investor (FPI) flows in the country. Vipul Bhowar, director of listed investments at Waterfield Advisors, highlighted the importance of these factors.
According to data from depositories, FPIs have made a net infusion of Rs 26,565 crore in equities this month. This positive trend follows a net outflow of Rs 25,586 crore in May and over Rs 8,700 crore in April. The earlier outflows were driven by concerns over political instability, changes in India’s tax treaty with Mauritius, and the rise in US bond yields.
V K Vijayakumar, the chief investment strategist at Geojit Financial Services, noted that political stability and the robust market performance have compelled FPIs to become buyers in India.
Overall, the influx of foreign investment in Indian equities signals renewed confidence in the country’s economic prospects. With upcoming events like the Budget and Q1 FY25 earnings reports on the horizon, market participants will be closely watching how these factors influence FPI flows in the coming months.
