BackFPIs continues to buy; pump in ₹10,384 crore in June
FPIs remain net buyers for the fifth month in a rowSo far in 2019, the FPIs have invested a net cumulative amount of ₹87,313.22 crore since January
PremiumNew Delhi: Foreign investors infused a net amount of ₹10,384 crore into the Indian capital markets in June and remained net buyers for the fifth month in a row on expectations of continued economic reforms.
Foreign portfolio investors (FPI) invested a net of ₹2,272.74 crore in equities and ₹8,111.80 crore in the debt segment, taking the total net investment to ₹10,384.54 crore in June, according to the depositories' data.
"The net inflows in June emphasises that investors expect the continuation of economic reforms under the (Bharatiya Janata Party) BJP-led government which would propel economic growth. However, the low quantum of net inflows suggests that investors are not yet investing with full conviction and are adopting a wait-and-watch stance before the Budget scheduled on 5 July," said Himanshu Srivastava, senior research analyst and manager (research), Morningstar.
So far in 2019, the FPIs have invested a net cumulative amount of ₹87,313.22 crore since January, the data showed.
Except January, FPIs have been net buyers in 2019 till now and have 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).
"FPI investment, though trending down post March, continues to be positive. So long as the leading central banks continue to be dovish, FPI inflows will continue. As of now, there are no signs of a stance reversal," V K Vijayakumar, chief investment strategist at Geojit Financial Services, said.
Commenting on the outlook, he said, "The FPI into Indian equity will depend on the outcome of Budget to be presented on July 5th. Presently, there is no valuation comfort in the market and the monsoon has been well below the long-term average, which are likely to moderate FPI flows."
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