📷 Image Credits: The Economic Times
Foreign Portfolio Investors (FPIs) have shown a positive trend in their investments in Indian equities in the month of June after two consecutive months of selling. According to official data, FPIs have turned net buyers of Rs 12,170 crore in Indian equities through June 21, marking a significant increase from the previous months. This surge in net inflows comes after a period of instability in the markets, with FPIs reducing their net selling from Rs 14,794 crore in the first week of June to Rs 3,064 crore by the end of the second week.
With the Modi 3.0 government taking office amidst a strong economic growth outlook, experts believe that FPIs have shifted their focus from selling to buying in the equity market. Despite concerns over high valuations, FPIs have shown interest in sectors like financial services, telecom, and realty, while selling in FMCG, IT, metals, and oil and gas.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted that FPIs are adjusting their investments based on valuations, selling where valuations are high and buying where they are reasonable. Sunil Damania, Chief Investment Officer at MojoPMS, pointed out that the positive inflow of FPIs is driven by the government’s policy continuity, the slowdown in the Chinese economy, and specific block deals in the market.
In addition to equity investments, FPIs have also been active in the Indian debt market, with a substantial investment of Rs 10,575 crore in June alone. This continued interest in Indian debt is expected to persist, especially with the inclusion of Indian government debt in major global indices. Overall, experts believe that India remains an attractive investment destination for global investors despite the current high market valuations.
