Mumbai: The value of foreign portfolio investors’ (FPI) holdings in the domestic equities reached $626 billion in the three months ended June 2023. This is 20% higher from the year-ago period. A report published by Morningstar revealed this.
According to the report, the value of FPIs’ investments in Indian equities rose from $523 billion as of June 2022 to $626 billion at the end of June 2023. On a quarter-on-quarter basis, the value of such investment rose 15% from $542 billion recorded in the three months ended March this year.
FPIs’ contribution to Indian equity market capitalization grew marginally to 17.33% for the quarter from 17.27% for the March quarter.
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Foreign Portfolio Investors (FPIs) have infused Rs 8,400 crore in Indian equities so far this month . According to data with the depositories, FPIs put in a net sum of Rs 8,394 crore in the Indian equities from August 1-18. FPIs invested Rs 4,646 crore in the debt market in this period. They also pulled out over Rs 2,000 crore from equities.
FPIs invested over Rs 40,000 crore each in the last three months (May, June, and July). The net inflow was Rs 46,618 crore in July, Rs 47,148 crore in June, and Rs 43,838 crore in May. Before March, overseas investors pulled out Rs 34,626 crore collectively in January and February. With this, inflow in the equity market reached Rs 1.31 lakh crore, while the same for debt was at over Rs 25,000 crore so far this year.
Foreign institutional investors (FII) or Foreign portfolio investors (FPI) are those who invest in the financial assets of a country while not being part of it. On the other hand, Domestic Institutional Investors (DII) are those who invest in the country they are living in. Both types of investors can impact the economy’s net investment flows.
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