Foreign portfolio investors (FPIs) have made a notable impact on the Indian equity market this week, pouring in ₹15,420 crore, as reported by the National Securities Depository. This influx boosts the total FPI investment to ₹30,772 crore for July alone, highlighting robust buying activity by foreign investors.
So far this year, FPIs have invested ₹1,30,138 crore in Indian equities. Despite anticipated fluctuations in FPI flows, the Indian market has shown strength this week, driven by impressive earnings reports and positive commentary from large-cap companies. In addition to India, markets in Brazil, Indonesia, Malaysia, Philippines, and South Korea have also seen inflows, while Taiwan, Thailand, and Vietnam experienced outflows.
Globally, FPIs have invested approximately USD 585 million in Brazil, USD 300 million in Indonesia, USD 324 million in Malaysia, and USD 2.085 billion in South Korea. Conversely, Taiwan faced a significant outflow of USD 5.325 billion, and Vietnam saw a decline of USD 278 million.
Market analysts attribute the continued foreign investment in India to a weakening dollar and lower bond yields. If these trends persist, foreign investors are expected to keep flowing into the Indian market. Notably, FPIs have been active buyers in sectors such as autos, capital goods, healthcare, IT, telecom, and oil and gas, while showing limited interest in financial services, which has underperformed in July.
Previously, FPIs had been net sellers in January, April, and May, offloading equities worth around ₹60,000 crore. However, they reversed this trend with significant purchases in February, March, and June, amounting to ₹63,200 crore.