Mumbai (Maharashtra) [India], June 21 (ANI): Foreign investors showed renewed interest in Indian equities this week, injecting ₹1,209 crore into the market from June 16 to June 20, according to data from the National Securities Depository Limited (NSDL). While this marks a positive trend, the inflows were lower compared to the previous week.
The surge in investments was primarily driven by robust buying activity on Wednesday and Friday. Market analysts pointed to foreign participation in block deals and the FTSE rebalancing as key contributors to this uptick.
Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services, highlighted India’s strong economic fundamentals as a major draw for foreign portfolio investors (FPIs). “Healthy economic growth, multi-year low inflation, RBI’s rate cuts, and expectations of an above-normal monsoon are bolstering investor confidence,” he told ANI.
Despite the weekly gains, June has seen a net outflow of ₹4,192 crore from FPIs as of June 20. However, this represents an improvement from the previous week’s outflow of ₹5,402 crore, signaling a potential stabilization in investor sentiment.
Khemka noted that upcoming global and domestic factors will play a crucial role in shaping FPI trends. Geopolitical developments, crude oil price fluctuations, and US tariff deadlines are key global triggers, while domestic indicators like monsoon progress and infrastructure developments will also influence market movements.
May emerged as the best month for foreign investment this year, with net inflows of ₹19,860 crore. In contrast, FPIs had withdrawn ₹3,973 crore in March, ₹78,027 crore in January, and ₹34,574 crore in February.
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