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Foreign portfolio investors turn buyers of Indian equities in June

Mumbai: Foreign portfolio investors (FPIs)  turned net buyers of Indian equities in June. FPIs invested Rs 11,730 crore (USD 1.4 billion) in the week ending June 14. This contrasts sharply with the net outflow of Rs 14,794 crore (USD 1.77 billion) recorded in the preceding week from June 3-7. The net outflow stood at Rs 3,064 crore for the month up to June 14.

FPIs   invested  Rs 2,029 crores in the cash segment last week. In the debt market, FPIs have invested over Rs 5,703 crore so far this month (up to June 14).. This comes after FPIs offloaded Rs 5,586 crore worth of Indian equities in May.

In May, Foreign Portfolio Investors (FPIs) withdrew Rs 25,586 crore from equities and more than Rs 8,700 crore in April. In contrast, FPIs made a net investment of Rs 35,098 crore in March and Rs 1,539 crore in February, after withdrawing Rs 25,743 crore in January.

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Overall, FPIs have withdrawn a net amount of Rs 26,428 crore from equities in 2024 so far, while they have invested Rs 59,373 crore in the debt market.

As per data, for the entire calendar year 2023, FPIs bought Rs 1.71 lakh crore in Indian equities and the total inflow stands at Rs 2.37 lakh crore taking into account debt, hybrid, debt-VRR, and equities. FPIs’ net investment in Indian debt market stands at Rs 68,663 crore during 2023.

Indian equities witnessed a  net outflow of Rs 1.21 lakh crore by FPIs in 2022. Before the outflow, FPIs invested money in the last three years. FPIs made a net infusion of Rs 25,752 crore in equities in 2021, Rs 1.7 lakh crore in 2020, and Rs 1.01 lakh crore in 2019. FPIs took out funds worth Rs 15,910 crore in 2022, Rs 10,359 crore in 2021, and Rs 1.05 lakh crore in 2020 from debt markets.

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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