FPI Investment: Foreign investors poured crores into the Indian stock market, record buying in July FPI Investment: Foreign investors poured crores into the Indian stock market; record buying in July

Once again, the tremendous dominance of foreign portfolio investors (FPIs) is being seen in the Indian Stock Market. After the ups and downs of the last few months, global investors’ confidence in the Indian economy has strengthened again. In the initial weeks of the current month of July, foreign investors have made huge purchases of more than ₹ 15,157 crore in the Indian equity market. Market analysts believe that this pace may increase even faster in the coming days.

Why did the confidence of foreign investors rise?

According to market experts, many important factors are working behind this rise in the Indian stock market and the return of FPI. The biggest reason is the recently presented Union Budget and stable political environment. Apart from this, strong quarterly results (Q1 Results) of Indian companies and the country’s strengthening macro-economic condition have also attracted global fund managers towards India. Indications of a possible cut in interest rates by the US Federal Reserve have also increased capital flows into emerging markets.

After June, shopping continues in July also

It is noteworthy that this positive trend is not limited to July only. Earlier in the month of June also, foreign investors had made a net investment of about ₹ 26,565 crore in the Indian market. The uncertainty and selling that was seen in the market due to the general elections in the months of April and May is now being compensated rapidly. This continuous buying by FPI is not only helping Sensex and Nifty touch new record levels, but is also boosting the morale of domestic retail investors.

Maximum investment is taking place in these sectors

According to reports, the main focus of foreign investors at present is on financial services, automobile, capital goods and technology sectors. Immense growth potential and strong earnings visibility are seen in these sectors. Experts say that if the rupee remains stable against the dollar and no major geopolitical tension emerges on the global front, then this flow of foreign capital into the Indian stock market will continue strongly in the second half of the financial year.