Indian two thousand and five hundred rupee banknotes are arranged for a photograph in Mumbai, India (Photographer: Dhiraj Singh/Bloomberg)

FPIs Remain Net Buyers For Fifth Month In A Row, Pump In Rs 10,384 Crore In June

Foreign portfolio investors infused a net amount of Rs 10,384 crore into the Indian capital markets in June and remained net buyers for the fifth month in a row on expectations of continued economic reforms.

FPIs invested a net of Rs 2,272.74 crore in equities and Rs 8,111.80 crore in the debt segment, taking the total net investment to Rs 10,384.54 crore in June, according to depositories' data.

"The net inflows in June emphasises that investors expect the continuation of economic reforms under the Bharatiya Janata Party-led government which would propel economic growth. said Himanshu Srivastava, senior research analyst and manager (research), Morningstar. “However, the low quantum of net inflows suggests that investors are not yet investing with full conviction and are adopting a wait-and-watch stance before the Budget scheduled on July 5.”

Also read: BQ Edge | How Much Is Riding On The Upcoming Union Budget?

So far in 2019, the FPIs have invested a net cumulative amount of Rs 87,313.22 crore since January, the data showed.

Except January, FPIs have been net buyers (both equity and debt) every month in 2019 till now:

  • February: Rs 11,182 crore
  • March: Rs 45,981 crore
  • April: Rs 16,093 crore
  • May: Rs 9,031.15 crore

"FPI investment, though trending down post March, continues to be positive. So long as the leading central banks continue to be dovish, FPI inflows will continue. As of now, there are no signs of a stance reversal," VK Vijayakumar, chief investment strategist at Geojit Financial Services, said.

Commenting on the outlook, he said, "The FPI into Indian equity will depend on the outcome of Budget to be presented on July 5. Presently, there is no valuation comfort in the market and the monsoon has been well below the long-term average, which are likely to moderate FPI flows."

Bloomberg Quint

Add BloombergQuint App to Home screen.