Foreign investors have poured ₹30,772 crore into Indian equities so far in July, driven by optimism over ongoing policy reforms, steady economic growth, and a stronger-than-expected earnings season.
According to data from depositories, Foreign Portfolio Investors (FPIs) have made a net inflow of ₹30,772 crore in equities up to July 19. This follows a net inflow of ₹26,565 crore in equities for June, which was influenced by political stability and a significant market rebound.
In contrast, FPIs withdrew ₹25,586 crore in May due to election uncertainties and more than ₹8,700 crore in April due to concerns about changes in Bharat’s tax treaty with Mauritius and rising US bond yields.
Beyond equities, FPIs invested ₹13,573 crore in the debt market during the same period, bringing the total debt investment to ₹82,197 crore for the year.
The investment flows for July 2024 have been varied across emerging markets. Alongside Bharat, countries like Brazil, Indonesia, Malaysia, the Philippines, and South Korea saw inflows. Conversely, Taiwan, Thailand, and Vietnam experienced outflows.
Market analysts suggest that foreign investment in Bharat is buoyed by a weakening dollar and lower bond yields. If this trend persists, continued foreign investment is expected.
In earlier months, Foreign Institutional Investors were net sellers in January, April, and May, offloading equities worth approximately ₹60,000 crore. However, they were net buyers in February, March, and June, with total purchases amounting to ₹63,200 crore.
