FPIs turn net buyers in June; invest Rs. 12,714 crore in Indian markets
- IBEF
- June 28, 2021
In June 2021, foreign portfolio investors (FPIs) turned net buyers by investing a net Rs. 12,714 crore (US$ 1.71 billion) into Indian markets.
In May 2021, overseas investors had pulled out Rs. 2,666 crore (US$ 359.36 million) from Indian markets and Rs. 9,435 crore (US$ 1.27 billion) in April 2021.
According to depositories data, between June 1, 2021 and June 25, 2021 FPIs invested Rs. 15,282 crore (US$ 2.06 billion) in equities. From the debt segment, FPIs withdrew Rs. 2,568 crore (US$ 346.15 million) at the same time.
Mr. Sanjiv Bajaj, Bajaj Capital Joint Chairman and MD said, “In June 2021, the inflow was favourable due to improving outlook for the Indian economy driven by gradual unlocking of the industry activities and rapid vaccination drives.”
He added, India is expected to witness a ''V''-shaped growth recovery due to normal monsoon forecasts, a well-capitalised banking system, growth in corporate sector and accommodating monetary policy.
Mr. V K Vijayakumar, Geojit Financial Services Chief Investment Strategist, said, “High delivery volumes in metal stocks and IT (information technology) shows solid institutional buying."
Mr. Shrikant Chouhan, Kotak Securities Executive Vice-President (Equity Technical Research) said that this week, the overall MSCI Emerging Markets Index increased by ~ 1.49%.
He said, Indonesia witnessed a month-to-date FPI inflows of US$ 363 million. Month-to-date FPI outflows in Taiwan stood at US$ 2,426 million, South Korea at US$ 1,218 million, Thailand at US$ 124 million and Philippines at US$ 64 million.
Mr. Himanshu Srivastava, Morningstar India Associate Director (Manager Research), said, "On the long-term outlook, India is expected to attract foreign investments as the domestic economy starts stepping up on the recovery path and macroeconomic environment develops further."
He added, so far, emerging markets such as India, have attracted foreign investments due to the ultra-relaxed monetary policy support by central banks globally to boost economies from the impact of the coronavirus pandemic.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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