📷 Image Credits: The Economic Times
Foreign Portfolio Investors (FPI) have made a significant impact by infusing Rs 7,962 crore in the Indian equity market during the first week of July, as reported by the National Securities Depository Limited (NSDL). This surge in FPI investments reflects a positive outlook on the Indian economy and market growth.
The data also reveals that the total investment by FPIs in the Indian markets has surpassed Rs 1 lakh crore this year, reaching a total of Rs 103,934 crore. This influx of funds has not only benefited the Indian market but has also boosted investor confidence in the country’s economic potential.
In comparison to other emerging markets, India has outshined with substantial FPI inflows in July. For instance, Indonesia received an FPI investment of USD 127 million, Malaysia received USD 81 million, and South Korea witnessed a record investment of USD 927 million during the same period. On the contrary, Thailand and Vietnam experienced outflows of USD 69 million and USD 68 million, respectively.
The recent positive sentiment in the Indian equity market can be attributed to strong government support for the economy, particularly in the manufacturing sector, ahead of the Union Budget. Additionally, the upcoming Q1FY25 earnings season has further amplified optimism, with IT services garnering increased interest from investors.
The trend of FPI investments in Indian markets has seen fluctuations in recent months. After a brief period of selling, FPIs turned net buyers in June with a net investment of Rs 26,565 crore. This shift in investment pattern indicates renewed confidence in India’s market potential and economic outlook.
Looking ahead, investors are closely monitoring the developments surrounding the upcoming Union Budget by the central government, which is expected to influence market trends and investor sentiment. The sustained FPI inflows in the Indian equity market underscore the growing attractiveness of India as a lucrative investment destination amidst a backdrop of healthy economic growth and market potential.
