After nine consecutive months of relentless selling, foreign investors have turned net buyers and invested nearly Rs 5,000 crore in Indian equities in July on softening dollar index and good corporate earnings. This is in sharp contrast to a net withdrawal of Rs 50,145 crore from the stock market seen in June. This was the highest net outflow since March 2020, when foreign portfolio investors (FPIs) had pulled out Rs 61,973 crore from equities, data with depositories showed.
Going forward, Hitesh Jain, Lead Analyst – Institutional Equities, Yes Securities, believes that FPI flows to remain positive during August as the worst for the rupee seems to be over, and oil seems to be confining in a range. “Also, earnings story still remains strong where sturdy revenue growth is offsetting contraction in profit margins,” he added.
According to data with depositories, FPIs infused a net amount of Rs 4,989 crore in Indian equities in July. They were buyers for nine days in the month.