FPIs return to India: Rs 20,200 cr injected into equities after months of selling
Foreign portfolio investors returned to the Indian equity market in July, injecting Rs 20,200 crore after four months of consistent selling. Analysts attribute this shift to attractive valuations, improved corporate earnings, and a stabilizing global investment climate.
Why it matters
The return of foreign capital is a critical indicator of investor confidence in the Indian economy and its resilience against global market volatility.
Foreign portfolio investors (FPIs) made their comeback to Indian equities in July after staying away for four consecutive months, emerging as net buyers with investments worth Rs 20,200 crore. Attractive valuations, improving corporate earnings and a better global investment environment helped bring foreign investors back.According to data from the Central Depository Services (India) Ltd (CDSL), FPIs had pulled out Rs 1.17 lakh crore from Indian equities in March, followed by outflows of Rs 60,847 crore in April, Rs 32,963 crore in May and Rs 49,340 crore in June. Before this, they had invested Rs 22,615 crore in February.Even with the July inflows, foreign investors remain net sellers for the year.
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