FPIs invest Rs 8,000 cr in four sessions
The inflow comes following a net withdrawal of Rs 2,954 crore in May and Rs 9,659 crore in April, data with depositories showed.
New Delhi: Foreign investors have infused close to Rs 8,000 crore into Indian equities in the first four trading sessions of June as risk-on sentiment improved amid rapidly falling new Covid cases and robust corporate earnings. The inflow comes following a net withdrawal of Rs 2,954 crore in May and Rs 9,659 crore in April, data with depositories showed.
Going ahead, improvement in the scenario on the coronavirus front in the country and pick-up in the vaccination drive may attract higher FPIs investments, Himanshu Srivastava, Associate Director – Manager Research, Morningstar India, said.
According to the data, foreign portfolio investors (FPIs) put in a net sum of Rs 7,968 crore in the Indian equity market during June 1-4. Prior to April’s outflow, FPIs had been infusing money in equities since October. They invested over Rs 1.97 lakh crore in equities during October 2020 to March 2021. This included a net investment of Rs 55,741 crore in the first three months of this year.
“With Covid numbers rapidly falling, more foreign investors are feeling comfortable investing in the Indian economy,” Harsh Jain, Co-founder and COO, Groww, said. Though big parts of the country remain locked down, some areas with low cases are starting ease restrictions following which certain parts of the economy are starting to function again, he added.
Making a similar statement, Morningstar India’s Srivastava said that “signs of improvement in the coronavirus situation with daily Covid-19 cases falling consistently in India over the last few weeks have provided comfort to foreign investors. The daily case count has come down below 1.5 lakh mark, along with improving recovery rate.” “This coupled with good quarterly results and a positive earnings growth outlook over the long-term prompted FPIs to turn their attention again on Indian equities. In addition to this, better than forecasted GDP number for the Covid-hit 2020-21 also boosted investor sentiments,” he added.
So far this year, overseas investors have put in a net sum of Rs 51,094 crore in equities, however, they pulled out net amount of Rs 17,300 crore from debt securities.
Now you can get handpicked stories from Telangana Today on Telegram everyday. Click the link to subscribe.
Click to follow Telangana Today Facebook page and Twitter .
Related News
