FPIs Pour Rs 30,772 Crore into Indian Equities in July – See Where the Money is Going

Foreign Portfolio Investors (FPIs) have bought Indian stocks worth Rs 30,772 crore in July so far, continuing their trend of buying. In total, they have invested Rs 33,973 crore in 2024.

FPIs Purchased

In June, FPIs purchased Indian shares worth Rs 26,565 crore. However, they were net sellers in April and May, selling shares worth Rs 8,671 crore and Rs 25,586 crore, respectively. They were also net buyers in February and March, investing Rs 1,539 crore and Rs 35,098 crore, respectively, after starting the year by selling shares worth Rs 25,744 crore in January.

Foreign Institutional Investors (FIIs)

On Friday, Foreign Institutional Investors (FIIs) bought Rs 1,506.12 crore worth of shares, while Domestic Institutional Investors (DIIs) sold Rs 461.56 crore worth of shares.

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that FPIs heavily invested in telecom and financial services by the end of June.

Other Stocks Bought

They also bought stocks in autos, capital goods, healthcare, and IT sectors but sold shares in metals, mining, and power sectors due to their recent rapid gains. He added that FPIs have consistently bought stocks in July, with investments reaching Rs 30,772 crore by the 19th. They also invested Rs 13,573 crore in debt during this period.

In the first half of July, FPIs bought shares in autos, capital goods, healthcare, IT, telecom, and oil and gas sectors. However, there was a noticeable lack of investment in financial services, contributing to the sector’s poor performance in July so far. Vijayakumar suggested that if the dollar and bond yields remain weak, FPIs are likely to continue buying in the market. Investors are also closely watching for possible changes in long-term capital gains tax in the upcoming Union Budget on July 23.

On Friday, the Indian stock market saw significant declines, with major indices closing in the red due to profit booking ahead of the Union Budget. The Nifty50 index dropped by 1.09% or 270 points to 24,530, and the S&P Sensex fell nearly 1% or 739 points to 80,604.65.