FPIs pour ₹16,621 crore into Indian equities in first half of August
FPIs had withdrawn ₹49,340 crore in June, ₹32,963 crore in May, ₹60,847 crore in April and a massive ₹1.17 lakh crore in March
Foreign investors injected ₹16,621 crore into Indian equities during the first half of August, marking a significant increase from their previous investments. This surge in activity comes after four months of heavy withdrawals, totaling ₹1.17 lakh crore, according to CDSL data. The renewed interest in Indian equities is attributed to several factors, including attractive valuations compared to other markets, steady corporate earnings, expectations of US interest rate cuts, and lower currency volatility.
Experts believe that the earlier selling by FPIs was more influenced by global macro factors rather than concerns over India's market. FPIs are now showing a greater interest in sectors linked to domestic consumption, such as consumer durables and healthcare. The recent buying spree suggests that foreign investors are becoming more selective in their investments, focusing on stocks that align with India's domestic growth story.
Looking ahead, foreign investor interest will likely remain sensitive to global cues, particularly developments in US Treasury yields, the dollar index, crude oil prices, and corporate earnings upgrades.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
