Overseas investors pumped in Rs 10,384 crore into the Indian capital markets in the month of June. The upward buying trend has continued for the fifth month straight over expectations of continued economic reforms by the Narendra Modi government. Of the total investment, the FPIs invested Rs 2,272.74 crore in equities and Rs 8,111.8 crore in the debt segment. The depositors' data shows FPIs have made the investment worth Rs 87,313.22 crore in 2019 so far.
"The net inflows in June emphasises that investors expect the continuation of economic reforms under the (Bharatiya Janata Party) BJP-led government which would propel economic growth. However, the low quantum of net inflows suggests that investors are not yet investing with full conviction and are adopting a wait-and-watch stance before the Budget scheduled on July 5," Himanshu Srivastava, senior research analyst and manager (research), Morningstar, told PTI.
The total investment in the Indian equity and debt markets this year includes Rs 9,031.15 crore in May; Rs 16,093 crore in April; Rs 45,981 crore in March; and Rs 11,182 crore in February. In January, however, investors withdrew over Rs 5,300 crore from the Indian capital markets.
"FPI investment, though trending down post-March, continues to be positive. So long as the leading central banks continue to be dovish, FPI inflows will continue. As of now, there are no signs of a stance reversal," the news agency quoted VK Vijayakumar, chief investment strategist at Geojit Financial Services, as saying.
Edited by Manoj Sharma