The data shows that the total investment by FPIs in Indian markets this year also stood at Rs. 1 lakh crore has crossed and according to NSDL Rs. 103,934 crores.
Other emerging markets also saw significant FPI inflows this month. In the first week of July, Indonesia received a record FPI investment of USD 127 million, Malaysia USD 81 million, Philippines only USD 5 million and South Korea USD 927 million.
However, equity markets in Thailand and Vietnam saw outflows of USD 69 million and USD 68 million respectively.
“Markets remain optimistic about strong government support for the economy in the upcoming Union Budget, especially for the manufacturing sector. Market optimism continues to expand with IT services looking in favor ahead of the upcoming Q1FY25 earnings season. FPI inflows are expected to remain volatile. Head of Equity Research, Kotak Securities Shrikant Chauhan said.
In early June, FPIs became net buyers in Indian markets after two months of selling. In June, FPIs invested in Indian equities at Rs. 26,565 crore net investment, following an initial sell-off earlier in the month after the election results were announced.
Earlier in May, FPIA from the equity market raised Rs. 25,586 crore had been withdrawn, while in April they had withdrawn Rs. 8,671 crore were net sellers with withdrawals. This trend of outflows created selling pressure in Indian equity markets.
But now, the increase in FPI investment points to renewed investor confidence in India’s market potential and economic outlook. Investors will now keep an eye on the upcoming budget by the central government and the markets will react accordingly. (ANI)
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