Foreign investors' confidence in the Indian stock market is increasing again, invested so many crores in the first week of July
Foreign portfolio investors (FPIs) have invested Rs 7962 crore in the Indian equity market in the first week of July. Data shows that the total investment by FPIs in the Indian markets this year has also crossed Rs 1 lakh crore and according to NSDL, it is Rs 103934 crore. India was not the only emerging market to see FPI inflows this month.
According to data from the National Securities Depository Limited (NSDL), foreign portfolio investors (FPIs) have shown new interest in the Indian stock market, making a net investment of Rs 7,962 crore ($1.03 billion) in the first week of July.
With this positive inflow, the total FPI investment in India in 2024 has gone up to Rs 1,03,934 crore ($13.5 billion).
India was not the only emerging market to see FPI inflows this month. Indonesia saw modest inflows of US$127 million, Malaysia US$81 million and the Philippines US$5 million.
South Korea led the way with a record-breaking US$927 million inflow in the first week of July. However, Thailand and Vietnam bucked the trend, seeing net outflows of US$69 million and US$68 million, respectively.
Market analysts attribute the positive trend in India to optimism over the upcoming Union Budget. Expectations of strong government support for the economy, especially the manufacturing sector, are boosting investor sentiment.
Additionally, the upcoming Q1FY25 earnings season for IT services companies is generating interest. However, experts warn that FPI inflows are likely to remain volatile.
This current inflow has reversed a two-month pattern of FPI outflows. FPIs invested a net of Rs 26,565 crore in Indian equities in June, following an initial sell-off triggered by the election results.
Previously, in May and April, net withdrawals of Rs 25,586 crore and Rs 8,671 crore, respectively, added to market pressure.
The increase in FPI investments shows renewed investor optimism about India's market potential and economic future. As the central government prepares to present its budget, all eyes will be on how it affects market performance.
