In July, FPIs have invested about Rs 5,000 crore in the stock markets.
The quarterly results of Indian companies have also been better.
From October till June this year, FPIs have withdrawn Rs 2.46 lakh crore from the Indian stock exchanges.
New Delhi. Foreign portfolio investors (FPIs) have returned to the Indian stock markets after selling for nine consecutive months. In July, FPIs have invested about Rs 5,000 crore in the stock markets. After the softening of the dollar index and better quarterly results of companies, FPIs have once again become a buyer.
Earlier in June, FPIs had withdrawn Rs 50,145 crore from shares. This is the highest withdrawal in a single month after March 2020. At that time, FPIs had withdrawn Rs 61,973 crore from the Indian stock markets.
FPI investors expected to continue in August
Hitesh Jain, Principal Analyst-Institutional Equities, Yes Securities believes that FPI inflows will remain positive in August as well. The reason for this is that the worst time of rupee has passed and crude oil prices are also trading in a range. Apart from this, the quarterly results of Indian companies have also been better.
Net investment of Rs 4,989 crore in Indian stock markets
According to depository data, FPIs invested a net Rs 4,989 crore in Indian stock markets in July. He was a pure buyer for nine days during the month. Earlier, for the last nine consecutive months, FPIs were sellers. From October last year till June this year, they have withdrawn Rs 2.46 lakh crore from the Indian stock markets.
America is not in recession yet
Himanshu Srivastava, Associate Director-Manager Research, Morningstar India said, “The reason for the FPI inflow in July is the statement of Federal Reserve Chairman Jerome Powell. Powell said that America is not in recession yet. The sentiment has improved after Powell’s statement and investors globally are now ready to take the risk.
However, in July, FPIs pulled out Rs 2,056 crore from the debt or bond market. Srivastava believes that it will take some time to predict what will be the attitude of FPIs going forward.
FIRST PUBLISHED : July 31, 2022, 12:50 IST