Foreign Inflows Into Equities At Rs 1,800 Crore In July So far
Foreign investors have put in over Rs 1,800 crore in the Indian equity markets so far in July after pulling out funds in the preceding month.
Foreign portfolio investors pumped in a net Rs 1,848 crore into equities from July 2-27, according to the latest depository data. But they withdrew Rs 482 crore from the debt market during the period under review.
“It would be too early to celebrate given the factors that influence FPI (foreign portfolio investor) flows do not look promising. Also, the recent buying by FPIs could be a part of their short-term tactical play as the quantum of net flows so far does not display conviction,” said Himanshu Srivastava, senior research analyst, manager research, Morningstar. “The concerns continue to persist over crude oil prices, high retail inflation, depreciating rupee against the U.S. dollar and fear of global trade war.”
The latest inflow comes after investors took out more than Rs 20,000 crore from the stock market in April-June. Overall, so far this year, foreign investors have pulled out nearly Rs 4,600 crore in equities and close to Rs 42,000 crore from the debt market.
The money, which is coming to the market is now from savings or those foreign investors who wish to or have entered the market for the first time, said Tushar Goyal, business development officer, Meri Punji IMF Ltd.