FPIs invest ₹30,772 crore in equities so far in July

Foreign investors inject ₹30,772 crore into Indian equities, driven by policy reforms, economic growth, and strong earnings season.

Foreign Portfolio Investors (FPIs) injected ₹30,772 crore into Indian equities so far this month, driven by hopes of continued policy reforms, sustained economic growth and a better-than-expected earnings season.

“Additionally, the anticipation of a reform-oriented Budget has also lifted investor sentiment,” Himanshu Srivastava, Associate Director - Manager of Research at Morningstar Investment Research India, said.

“Going forward, if the recent trend of weakness in dollar and bond yields persists, FPIs are likely to continue their buying in the market,” V.K. Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said.

“Domestic and foreign investors are keenly watching for possible tweaks in the long-term capital gains tax in the Budget to be presented on July 23,” he added.

According to the data with the depositories, FPIs have made a net inflow of ₹30,772 crore in equities this month (till July 19).

This came following an inflow of ₹26,565 crore in equities in the entire month of June, driven by political stability and the sharp rebound in markets.

Before that, FPIs withdrew ₹25,586 crore in May on poll jitters and more than ₹8,700 crore in April on concerns over a tweak in India’s tax treaty with Mauritius and a sustained rise in the U.S. bond yields.