Business News | Foreign Investors Turn Net Buyers in India Stocks for 5th Straight Month in July
Get latest articles and stories on Business at LatestLY. Foreign portfolio investors (FPIs) have remained net buyers in Indian stock markets for the fifth straight month, according to data from the National Securities Depository (NSDL).
New Delhi [India], August 6 (ANI): Foreign portfolio investors (FPIs) have remained net buyers in Indian stock markets for the fifth straight month, according to data from the National Securities Depository (NSDL).
FPIs bought Indian stocks worth Rs 7,936 crore, Rs 11,631 crore, Rs 43,838 crore, Rs 47,148 crore, and Rs 46,618 crore in March, April, May, June, and July, respectively, data showed. In August, however, they are thus far net sellers at Rs 2,034 crore.
So far in 2023, foreign investors have put in Rs 120,991 crore in the Indian stock markets.
The foreign funds making their way into Indian stocks buoyed the broader market as the indices have been touching their respective fresh peaks every now and then. Notably, Sensex recently breached the 67,000 mark for the first time.
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The latest fund inflows started after the recent banking crisis in the US, leading to the Silicon Valley Bank's closure, among others, in March. Also, India's strong economic outlook, as forecasted by various global agencies, seemed to have made a renewed appetite for domestic stocks.
One of the most prominent lenders in the world of technology startups, Silicon Valley Bank, which had been struggling, collapsed on March 10, after a run on the bank by the depositors. Its closure led to a contagion effect and the subsequent shutting down of other banks.
Notably, in January and February, FPIs sold equities worth Rs 28,852 crore and Rs 5,294 crore, respectively. NSDL data showed. Foreign investors were apparently cautious amid risks from the then-volatile financial markets.
Barring some exceptions including the current one, foreign portfolio investors (FPIs) had been selling equities in the Indian markets for over a year, which started in October 2021 for various reasons.
In 2022, foreign portfolio investors sold Rs 121,439 crore worth of stocks in India on a cumulative basis, the data available on the NSDL website showed.
Tightening monetary policy in advanced economies including rising demand for dollar-denominated commodities, and strength in the US dollar had then triggered a consistent outflow of funds from Indian markets. Investors typically prefer stable markets in times of high market uncertainty. (ANI)
(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)