Curated By: Business Desk
Last Updated: August 21, 2023, 12:57 IST
Foreign investors have put in 13,948 crore into the Indian share market in August so far. As per the depositories data, Foreign Portfolio Investors (FPIs) have bought Indian equities total of Rs 8,394 crore and invested Rs 4,646 crore in the debt market of India. The net sum of the influx of money by foreign investors is over Rs 13,040 crore during the August 1 and August 18 period.
Before August, India witnessed a continuous inflow of money from foreign investors from March to July. Rs 8,394 crore figure also includes the bulk deals and investments in primary markets by the FPIs.
FPIs invested over Rs 40,000 crore in each of the last three months showcasing their trust in the Indian markets. The net inflow of money by FPIs in the month of July was Rs 46,618 crore, Rs 47,148 crore in June and Rs 43,838 crore rupees in May.
Shrikant Chauhan, head of equity research (retail), at Kotak Securities, said that the large investments by foreign investors in the Indian market are due to the lack of demand in China and the weak global stock market which can cause the huge volatility in shares in the local market. FPIs are largely affected by the global market.
During the period of August 1 to August 18, the Indian market saw an inflow of Rs 8,000 crore from foreign investors but also saw the FPIs pulling out Rs 2,000 crore earlier this month. It happened after the credit rating firm Fitch Ratings downgraded the credit rating of the USA from AAA to AA+ due to the fiscal decline and the increasing debt over time.
Morningstar India’s Associate Director-Manager Research Himanshu Srivastava said that these investments by Foreign Portfolio Investors in India will have a positive impact on Indian markets. The higher-than-expected earnings in the June quarter have also made the share market receptible enough for more foreign investors. It was the highest monthly FPI inflow since August 2022.
