Mumbai, June 21
Foreign investment in the Indian equity market remained positive during the week from June 16 to June 20, though the net inflows declined compared to the previous week, as per the latest data released by the National Securities Depository Limited (NSDL).
According to the data, foreign investors made net inflows worth Rs 1,209 crore in Indian equities this week. The inflows were largely supported by significant buying activity on Wednesday and Friday.
Market experts attributed this trend to foreign participation in several block deals offered during the week, along with notable inflows on Friday due to the FTSE rebalancing.
Siddhartha Khemka, Head Research, Wealth Management, Motilal Oswal Financial Services told ANI "FPI inflows this week has been driven by buying seen in several blocks offered during the week as well as large inflows on Friday due to FTSE rebalancing. Overall Indian economy stands strong driven by healthy economic growth multi year low inflation, rate cut by RBI as well as prospects of a above normal monsoon".
Despite the positive movement this week, foreign portfolio investment (FPI) flows for the month of June so far continue to remain in the negative.
As of June 20, the net outflows by foreign investors stood at Rs 4,192 crore. However, this is an improvement from the previous week (ending June 13), when net outflows were higher at Rs 5,402 crore. This reduction in outflows reflects some signs of stabilization in FPI sentiment.
Khemka added that the recent inflows are being driven by India's strong economic fundamentals. These factors are collectively boosting investor confidence and encouraging selective foreign investment, even amid global uncertainties.
Looking ahead, he suggested that both global and domestic factors will influence FPI trends in the coming week. Key global triggers include geopolitical developments, fluctuations in crude oil prices amid tensions in middle east, and the approaching deadline for the imposition of US reciprocal tariffs.
On the domestic front, important drivers will be macroeconomic indicators, institutional buying support, and sector-specific triggers such as monsoon progress, consumption trends, and infrastructure push. These elements are expected to determine stock specific movements and FPI behaviour in the short term.
Earlier in May, the net foreign portfolio investment (FPI) inflows remained in positive and stood at Rs 19,860 crore, making May the best-performing month so far this year in terms of foreign investment.
The previous months' data also showed that FPIs had sold stocks worth Rs 3,973 crore in March. In January and February, they had sold equities worth Rs 78,027 crore and Rs 34,574 crore, respectively.
— ANI
Reader Comments
Good to see some positive movement after months of volatility! Our economy is fundamentally strong with good GDP growth and controlled inflation. Foreign investors will eventually realize India's long-term potential. Just need to be patient during these global uncertainties.
The numbers show how sensitive our markets are to global factors. While Rs 1209 cr inflow is positive, we must reduce this dependency on foreign money. More domestic institutional investment would make our markets more stable 🇮🇳
FPIs are like monsoon - sometimes heavy, sometimes drought. But our economy is like the Ganga - keeps flowing steadily regardless! 😊 The numbers may fluctuate but India's growth story remains intact. Just need to focus on manufacturing and infrastructure.
Worried about the net outflow of Rs 4192 cr in June. Government should take more steps to attract foreign investment - maybe faster approvals for projects and more policy stability. We're competing with other emerging markets for these dollars.
These short-term numbers don't matter much. What matters is that India is becoming a $5 trillion economy soon. Smart investors know this and will keep coming back. The May numbers (Rs 19,860 cr) show the real trend when global conditions improve.
The article mentions FTSE rebalancing driving inflows - this shows how important it is for more Indian companies to meet global governance standards. Better corporate governance = more stable foreign investment. Hope SEBI keeps pushing for reforms in this area.
Here are 6 diverse Indian perspective comments for the article: We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.