There was a total net inflow of Rs 13,424 crore. This follows net withdrawals of Rs 2,666 crore and Rs 9,435 crore in May and April, respectively.
In terms of June inflows, VK Vijayakumar, chief investment strategist at Geojit Financial Services, said that fourth-quarter corporate numbers indicate that a cyclical rebound in the Indian economy is on the way following the progressive unlocking that is currently taking place. “The FPI activity was concentrated on the IT, banking, and energy sectors,” said S Ranganathan, LKP Securities’ Head of Research.
As risk-on mood improved with falling COVID-19 cases and anticipation of an early opening of the economy, overseas investors pumped in a net Rs 13,424 crore so far in June. According to depositories, foreign portfolio investors (FPIs) invested Rs 15,520 crore in shares between June 1 and 11.
“The robust net inflows over the last two weeks might be ascribed to an improvement in investor sentiments on the back of continually declining coronavirus cases in the country and anticipation of an early economic opening,” said Morningstar India associate director – manager research Himanshu Srivastava.
During the period under review, FPIs also withdrew Rs 2,096 crore from the debt segment. According to Shrikant Chouhan, executive vice president, equities technical analysis at Kotak Securities, the MSCI Emerging Markets Index has dropped 0.91 percent this week.
He added Thailand, South Korea, Indonesia, and the Philippines had month-to-date FPI inflows of USD 188 million, USD 140 million, USD 138 million, and USD 125 million, respectively, in other emerging markets.
Taiwan, on the other hand, has seen USD 829 million in FPI outflows so far this month.
Vaccination is projected to build up in the future, with a further drop in Covid cases, increased consumer expenditure, a healthy monsoon season, and a return to normalcy in the general situation, he noted.
FPI flows may stay robust in the medium term, according to Chouhan, because India is on the verge of a growth rebound. Low interest rates, stronger export prospects, and global economic recovery, he argued, are an interesting mix for India’s economic resurgence.
