FPIs continue to be bullish on Indian equities; invest ₹22,000 cr in July

Foreign Portfolio Investors (FPIs) continue their liking for Indian equities with a net infusion of nearly ₹22,000 crore in the first week of this month due to resilience of the domestic economy amid an uncertain global macro backdrop.

Foreign Portfolio Investors (FPIs) continue their liking for Indian equities with a net infusion of nearly ₹22,000 crore in the first week of this month due to resilience of the domestic economy amid an uncertain global macro backdrop.

If this trend continues, investment by FPIs in July will exceed the figures recorded in May and June, which were ₹43,838 crore and ₹47,148 crore, respectively, V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.

Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities, said that FPIs may take some money off the table to maintain caution as concerns over interest rate hikes by the U.S. Federal Reserve in July once again come up.

According to data from the depositories, FPIs have been continuously buying Indian equities since March and poured ₹21,944 crore this month (till July 7).

Before March, overseas investors pulled out ₹34,626 crore collectively in January and February.

Kotak Securities' Chouhan said that India's emergence as a strong growth-oriented market over others provides major confidence to overseas investors.

"With the revival in monsoon in many parts of the country coupled with expectations of relatively better-than-expected corporate earnings in the first quarter, overseas investors have been increasing exposure to Indian equities," he added.