Foreign portfolio investors (FPIs) continue to display confidence in the Indian stock market, making significant investments. So far this month, FPI have invested a total of INR 14,582.63 crore in the Indian market. These investments have been observed across various sectors. The recent surge in US interest rates has made Indian equities comparatively less appealing to foreign investors. This factor, among others, may influence FPIs to sell their holdings. Despite the recent market sell-off, FPI inflows remain positive this year, with a net inflow of INR 1,01,416 crore.
Expert opinions
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, stated, “FPI inflows into India continue to flow unabated. On Friday, the dollar index hit a one-year low, dropping below 100. Among emerging markets, India has witnessed the highest FPI investments so far this year. Selling continues in China, and FPIs have recently been selling in emerging markets such as Thailand and Vietnam.”
Significant sector-wise investments
As of 14th July, FPIs have invested INR 30,660 crore in India, including investments made through bulk deals, primary markets, and stock exchanges. FPIs continue to invest in sectors such as financial, automobile, capital goods, realty, and FMCG. Their buying activity in these sectors has contributed significantly to the upward movement of stock prices, propelling the Sensex and Nifty to record highs.
