FPIs pump in Rs 13,269 cr in Indian markets in June as investor sentiment improves, COVID cases fall
Foreign portfolio investors (FPIs) turned out to be net buyers in the month of June, in reversal of a two-month trend.
They pumped in a net of Rs 13,269 crore in Indian equity markets. The turnaround could be attributed to improved investor sentiment on the back of steadily declining cases of COVID-19 in the country and hopes of an early reopening of the economy, Himanshu Srivastava, Morningstar India Associate Director (Manager Research), told PTI.
He further stated that this reversal, along with good quarterly results and a positive earnings growth projection over the long-term, revived FPIs’ interest in Indian equities.
Also Read: FPIs turn net buyers in June, pump in over Rs 12,000 cr in Indian markets
Overseas investors infused Rs 17,215 crore into equities between June 1 and June 30, according to depositories data.
Regarding the debt segment, FPIs on the contrary withdrew Rs 3,946 crore.
Net investment during the period under review stood at Rs 13,269 crore.
Prior to this, overseas investors had pulled out Rs 2,666 crore in May and Rs 9,435 crore in April.
LKP Securities Head (Research) S Ranganathan said, “June witnessed a gradual opening up of the localised lockdown seen in April and May and FPIs bought stocks across sectors like information technology, fintech and insurance which were broad-based across large-caps and mid-caps.”
Also Read: FPIs pump in Rs 13,667 cr in Indian markets in June so far
Kotak Securities Executive Vice-President (Equity Technical Research) Shrikant Chouhan said most emerging economies and Asian markets have seen FPI inflows this month to date, except for Taiwan, South Korea and the Philippines.
Among emerging markets, India witnessed the highest FPI inflows of $1,498 million, followed by Indonesia ($342 million). On the other hand, Taiwan witnessed the highest FPI outflows of $1,814 million, South Korea $792 million and Phillipines $79 million, he added.
Geojit Financial Services Chief Investment Strategist, V K Vijayakumar said, “Going forward, FPIs may continue to book profits in India. However, they are unlikely to sell aggressively in India, in spite of higher valuations, since India Inc is all set to report excellent numbers in FY22.”
