Mumbai: Foreign portfolio investors (FPIs) have made a net inflow of Rs 15,352 crore in equities this month (till July 12). This was due to government’s commitment to ongoing reforms, low US Federal rates, and strong domestic demand.
This came following an inflow of Rs 26,565 crore in equities in June on the back of political stability and a sharp rebound in markets. Before that, FPIs withdrew Rs 25,586 crore in May on poll jitters and over Rs 8,700 crore in April on concerns over a tweak in India’s tax treaty with Mauritius and a sustained rise in US bond yields.
Apart from equities, FPIs invested Rs 8,484 crore in the debt market during the period under review. This has pushed the debt tally to Rs 77,109 crore this year so far.
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The domestic institutional investors (DIIs) have been consistent buyers every month in 2024, while FPIs have fluctuated between buying and selling. FPIs sold a cumulative amount of Rs 60,000 crore in January, April, and May but bought Rs 63,200 crore in February, March, and June together.
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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