New Delhi: Foreign investors poured over Rs 7,900 crore into Indian stocks in the first week of the month amid healthy economic and earnings growth momentum.
With this, FPI's total investment in equities has reached Rs 1.16 lakh crore so far this year, depositories' data showed.
Going forward, the Union Budget and Q1FY25 earnings could determine the sustainability of FPI flows, experts said.
According to the data, foreign portfolio investors (FPIs) have made a net inflow of Rs 7,962 crore into stocks so far this month (till July 5).
This followed an inflow of Rs 26,565 crore into equities in June, driven by political stability and a strong rally in the markets.
Before that, FPIs withdrew Rs 25,586 crore in May on poll jitters and over Rs 8,700 crore in April over concerns over a tweak in India's tax treaty with Mauritius and a sustained rise in yields. US bonds.
Some funds were probably waiting on the sidelines for the election event to end, said Milind Muchhala, CEO of Julius Baer India.
"We believe India remains an attractive investment destination amid healthy economic and earnings growth momentum, and FPIs cannot afford to ignore the markets for too long," he added.
Geojit Financial Services chief investment strategist VK Vijayakumar said an important feature of FPI flows is that its selling in India has been triggered by external factors such as rising bond yields in the US and falling valuations in other emerging markets. When that situation changes, they become buyers in India again.
In the fortnight ended June 30, FPIs bought heavily in telecommunications and financial services. Additionally, they were buyers of automobiles, capital goods, healthcare and IT. On the other hand, selling was seen in metals, mining and energy, which had risen too quickly in recent months.
Apart from equities, FPIs invested Rs 6,304 crore in the debt market during the period under review. This has taken the total debt to Rs 74,928 crore so far this year.
"The inclusion of Indian government bonds in the JP Morgan EM Govt Bond index and investor advantage have contributed to this divergence in equity and debt inflows," Vijayakumar said.
With this, FPI's total investment in equities has reached Rs 1.16 lakh crore so far this year, depositories' data showed.
Going forward, the Union Budget and Q1FY25 earnings could determine the sustainability of FPI flows, experts said.
According to the data, foreign portfolio investors (FPIs) have made a net inflow of Rs 7,962 crore into stocks so far this month (till July 5).
This followed an inflow of Rs 26,565 crore into equities in June, driven by political stability and a strong rally in the markets.
Before that, FPIs withdrew Rs 25,586 crore in May on poll jitters and over Rs 8,700 crore in April over concerns over a tweak in India's tax treaty with Mauritius and a sustained rise in yields. US bonds.
Some funds were probably waiting on the sidelines for the election event to end, said Milind Muchhala, CEO of Julius Baer India.
"We believe India remains an attractive investment destination amid healthy economic and earnings growth momentum, and FPIs cannot afford to ignore the markets for too long," he added.
Geojit Financial Services chief investment strategist VK Vijayakumar said an important feature of FPI flows is that its selling in India has been triggered by external factors such as rising bond yields in the US and falling valuations in other emerging markets. When that situation changes, they become buyers in India again.
In the fortnight ended June 30, FPIs bought heavily in telecommunications and financial services. Additionally, they were buyers of automobiles, capital goods, healthcare and IT. On the other hand, selling was seen in metals, mining and energy, which had risen too quickly in recent months.
Apart from equities, FPIs invested Rs 6,304 crore in the debt market during the period under review. This has taken the total debt to Rs 74,928 crore so far this year.
"The inclusion of Indian government bonds in the JP Morgan EM Govt Bond index and investor advantage have contributed to this divergence in equity and debt inflows," Vijayakumar said.