New Delhi [India], Foreign Portfolio Investors (FPIs) have pumped Rs 7,962 crore into the Indian stock market in the first week of July, according to data from National Securities Depository Limited (NSDL).
The data highlights that the total investment by FPIs in Indian markets has also crossed Rs 1 lakh crore this year and, according to NSDL, stands at Rs 1,03,934 crore.
The other emerging markets also received significant FPI inflows this month. Indonesia received an FPI investment of $127 million, Malaysia received $81 million, the Philippines received only $5 million and South Korea received a record investment of $927 million in the first week of July.
However, the stock markets of Thailand and Vietnam witnessed outflows of $69 million and $68 million, respectively.
"Markets remained optimistic about strong government support for the economy, especially the manufacturing sector, in the upcoming Union Budget. Market optimism continued to spread, with IT services finding favor ahead of the upcoming US earnings season. Q1FY25. FPI flows are expected to remain volatile,” said Shrikant Chauhan, head of equity research at Kotak Securities.
In early June, FPIs became net buyers in Indian markets after two months of selling. In June, FPIs pumped in a net investment of Rs 26,565 crore into Indian stocks, following initial selling earlier in the month after the election results were announced.
Before that, in May, FPIs withdrew Rs 25,586 crore from the stock market, while in April they were net sellers with a withdrawal of Rs 8,671 crore. This trend of outflows created selling pressure in the Indian stock market.
But now, the increase in FPI investments points to renewed investor confidence in India's market potential and economic prospects. Investors will now closely monitor the central government's upcoming budget and markets will react accordingly.
The data highlights that the total investment by FPIs in Indian markets has also crossed Rs 1 lakh crore this year and, according to NSDL, stands at Rs 1,03,934 crore.
The other emerging markets also received significant FPI inflows this month. Indonesia received an FPI investment of $127 million, Malaysia received $81 million, the Philippines received only $5 million and South Korea received a record investment of $927 million in the first week of July.
However, the stock markets of Thailand and Vietnam witnessed outflows of $69 million and $68 million, respectively.
"Markets remained optimistic about strong government support for the economy, especially the manufacturing sector, in the upcoming Union Budget. Market optimism continued to spread, with IT services finding favor ahead of the upcoming US earnings season. Q1FY25. FPI flows are expected to remain volatile,” said Shrikant Chauhan, head of equity research at Kotak Securities.
In early June, FPIs became net buyers in Indian markets after two months of selling. In June, FPIs pumped in a net investment of Rs 26,565 crore into Indian stocks, following initial selling earlier in the month after the election results were announced.
Before that, in May, FPIs withdrew Rs 25,586 crore from the stock market, while in April they were net sellers with a withdrawal of Rs 8,671 crore. This trend of outflows created selling pressure in the Indian stock market.
But now, the increase in FPI investments points to renewed investor confidence in India's market potential and economic prospects. Investors will now closely monitor the central government's upcoming budget and markets will react accordingly.
