In reversal of a two-month selling trend, foreign portfolio investors (FPIs) in June turned out to be net buyers by investing a net Rs 13,269 crore in Indian markets.
This could be attributed to improvement in investor sentiments on the back of consistently falling coronavirus cases in the country and hopes of an early opening of the economy, said Morningstar India Associate Director (Manager Research) Himanshu Srivastava.
According to depositories data, FPIs invested Rs 17,215 crore in equities between June 1 and June 30. As regards the debt segment, FPIs on the contrary withdrew Rs 3,946 crore. Net investment during the period under review stood at Rs 13,269 crore.
Prior to this, overseas investors had pulled out Rs 2,666 crore in May and Rs 9,435 crore in April. LKP Securities Head (Research) S Ranganathan said, “June witnessed a gradual opening up of the localised lockdown seen in April and May and FPI’s bought stocks across sectors like information technology, fintech and insurance which was broad-based across large-caps and mid-caps.”
Kotak Securities Executive Vice-President (Equity Technical Research) Shrikant Chouhan said most emerging economies and Asian markets have seen FPI inflows this month to date, except for Taiwan, South Korea and Phillipines.
Among emerging markets, India witnessed the highest FPI inflows of USD 1,498 million, followed by Indonesia (USD 342 million). On the other hand, Taiwan witnessed the highest FPI outflows of USD 1,814 million, South Korea USD 792 million and Phillipines USD 79 million, he added.
Geojit Financial Services Chief Investment Strategist V K Vijayakumar said, “Going forward, FPIs may continue to book profits in India. However, they are unlikely to sell aggressively in India, in spite of higher valuations, since India Inc is all set to report excellent numbers in FY22.” .