Foreign investors pump in ₹10,312 crore in June so far1 min read . Updated: 24 Jun 2019, 09:40 AM IST
- Going forward, the focus of FPIs would be on the Budget on 5 July
- FPIs have been net buyers for the previous four consecutive months
New Delhi: Overseas investors have infused a net sum of ₹10,312 crore in the domestic capital markets this month so far, with debt segment accounting for the lion's share.
Equity investments have slowed down on account of rising geopolitical tensions in the Middle East as well as US-India trade conflict, experts said.
As per the latest depositories data, foreign portfolio investors (FPIs) pumped in a net amount of ₹552.07 crore into equities and ₹9,760.59 crore into the debt market during 3-21 June, taking the cumulative net investment to ₹10,312.66 crore.
FPIs have been net buyers for the previous four consecutive months. They invested a net ₹9,031.15 crore in May, ₹16,093 crore in April, ₹45,981 crore in March and ₹11,182 crore in February into the Indian capital markets (both equity and debt).
Equity investments in June have tapered off as "the US-Iran conflict seems to have spooked the global investors' sentiment. The recent US-India trade fight seems to have affected the investors as well," Groww COO Harsh Jain said.
However, these are fairly short term impacts and do not affect the long term investment prospects of India, he added.
Similarly, Himanshu Srivastava, senior research analyst, manager research at Morningstar, said: "The sentiment this week was dented due to the surge in crude prices as well as brewing tension in the Middle East between US and Iran. Escalation in the trade war too put investors on tenterhook as they adopted a wait and watch stance."
Going forward, the focus of FPIs would be on the Budget on 5 July where the government will present its roadmap for fiscal consolidation, fiscal deficit target and the steps it would take to propel economic growth, Srivastava added.
This story has been published from a wire agency feed without modifications to the text.