FPIs turn net buyers in Indian equity markets in July

1 Aug 2022 , 08:12 AM

Foreign investors became net buyers in July after nine months of nonstop selling, investing roughly Rs5,000 crore in Indian shares as a result of a weaker dollar index and strong corporate earnings.

This stands in stark contrast to a net withdrawal from the stock market in June of Rs50,145 crore. According to depositories’ data, this was the greatest net outflow since March 2020, when foreign portfolio investors (FPIs) withdrew Rs61,973 crore from stocks.

Data from depositories show that in July, FPIs invested a net amount of Rs4,989 crore in Indian shares. In the month, they bought on nine of the days.

The equities markets were likewise driven northward by the net influx.

After nine successive months of substantial net outflows beginning in October of last year, FPIs started to turn net buyers in July. They sold a massive Rs2.46 lakh crore in the Indian equity markets between October 2021 and June 2022.

According to Himanshu Srivastava, Associate Director – Manager Research at Morningstar India, the US Federal Reserve Chairman Jerome Powell’s declaration that the US is not now in a recession helped enhance attitudes and risk appetite globally and was the turning point for the net flows in July.

However, during the month, FPIs withdrew a net amount of Rs2,056 crore from the debt market.