FPIs invest Rs. 13,424 crore in Indian markets in June so far
- IBEF
- June 14, 2021
In June 2021, overseas investors invested a net Rs. 13,424 crore (US$ 1.83 billion) due to relaxing of COVID-19 imposed lockdown and restrictions. As per the data, foreign portfolio investors (FPIs) invested Rs. 15,520 crore (US$ 2.12 billion) in equities in June 2021 (June 1-11).
Mr. Himanshu Srivastava, associate director - manager research, Morningstar India, said, "The healthy net inflows could be due to improved investor sentiments driven by relaxing of COVID-19 imposed lockdown and restrictions and anticipation of early economic recovery.”
In the period under review, FPIs withdrew Rs. 2,096 crore (US$ 286.05 million) from the debt segment, bringing the total net inflow at Rs. 13,424 crore (US$ 1.83 billion).
In May net withdrawal stood at Rs. 2,666 crore (US$ 363.84 million) and Rs. 9,435 crore (US$ 1.29 billion) in April.
Mr. VK Vijayakumar, chief investment strategist at Geojit Financial Services, said, “The improved numbers indicates a recurring Indian economic recovery on the horizon of post the gradual unlock.
Mr. S Ranganathan, Head of Research at LKP Securities, said, "The FPI interest was focused on IT, financial and energy sectors."
Mr. Shrikant Chouhan, executive vice president, equity technical research at Kotak Securities, said, “Month to date, FPI inflows in Thailand stood at US$ 188 million, US$ 140 million in South Korea, US$ 138 million in Indonesia and US$ 125 million in Philippines. Taiwan registered FPI outflows of US$ 829 million month to date.”
As per Mr. Chouhan, FPI flows might continue robust going forward in the medium term as India is at a verge of growth revival pathway.
Remarkably, low interest rates, improved exports outlook and recovery in global economy is a good pattern for India's economic recovery, he said.
Going forward, vaccination is projected to ramp-up, constant decrease in COVID-19 cases, improved consumer spending, healthy monsoon season and stabilisation of overall situation could be anticipated, he added.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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