FPI Turns Positive In June With Rs 12,170 Crore Investment, But 2024 Net Investment Remains Negative | Economy News
On the last trading session of the previous week, FPIs invested Rs 2,250.20 crore in the Indian markets. The shift in FPI behaviour has been particularly noticeable since June 10, influenced by the election results. (Also Read: Gautam Adani’s 2024 Salary Revealed – Less Than Some Of His Own Employees! Find Out Here)
“Foreign Portfolio Investors (FPIs) have altered their position in the equity market following the election results, injecting Rs 23,786 crore since June 10th. There are three primary reasons for this positive inflow. First, the continuity of the government assures ongoing reforms. (Also Read: Kolkata Struggles With Soaring Vegetable Prices Due To Scanty Rainfall; Full Details Inside)
Second, the Chinese economy is decelerating, as evidenced by a 12 percent decline in copper prices over the past month. Third, certain block deals in the market have been eagerly taken up by FPIs,” said Sunil Damania, Chief Investment Officer, MojoPMS.
In contrast, may saw FPIs withdraw Rs 25,586 crore from the equity market, while in April, they were net sellers with a withdrawal of Rs 8,671 crore. This trend of outflows had created a cautious atmosphere in the market.
Market experts note that the recent FPI inflows are concentrated in a select few stocks rather than being spread across the market or sectors. They believe that high valuations currently commanded by the Indian equity market will constrain FPI inflows. While June’s figures show a positive net investment, the overall sentiment among FPIs remains one of cautious optimism, tempered by valuation concerns.
This strategic approach by foreign investors highlights their close monitoring of economic indicators and the government steps before the presentation of budget. As the year progresses, the balance of net investments will likely depend on the evolution of these factors, particularly in the context of global economic conditions and domestic policy continuity.