📷 Image Credits: The Economic Times
The recent data indicates that FII buying in June has crossed Rs 15,000 crore in the Indian market. While domestic investors, led by mutual funds, have been consistent buyers throughout 2024, FIIs have shown alternating patterns of buying and selling. Dr VK Vijayakumar of Geojit Financial Services mentioned that FII flows tend to be influenced by global factors, with better-than-expected results from IT majors driving potential FII buying in stocks where valuations are reasonable. The Q1 earnings season kick-off has already seen a positive trend, especially with TCS’s performance surprising the street, leading to a 4.5% jump in the Nifty IT index in a single day. This positive sentiment in the market can be attributed to stable government assurances on reforms, tepid US Fed rates, and strong domestic demand. Furthermore, recent developments in IFSC Gift City have attracted both foreign and Indian investors to allocate a significant portion of their global portfolio to Indian markets. All eyes are now on the upcoming Budget proposals to be tabled on July 23. Amidst improved GDP forecasts and robust earnings from Indian corporations, FIIs have turned net buyers in June, purchasing Indian stocks worth about Rs 26,565 crore. Political stability and market rebound have notably contributed to FII interest in India, with analysts expecting selective investments in specific sectors. While market volatility remains a concern, the long-term outlook for FPI flows in India appears positive, considering the stability in FPI flows and the potential impact of India’s inclusion in the JP Morgan Bond Index.
