New Delhi: Foreign portfolio buyers (FPI) remained net buyers for the second consecutive month in July by pumping in Rs 3,301 crore in Indian markets amid hopes of a coronavirus vaccine.
According to the depositories knowledge, a net sum of Rs 7,563 crore was invested in equities whereas Rs 4,262 crore had been withdrawn by FPIs between July 1-31.
The net funding in the course of the month stood at Rs 3,301 crore. In the earlier month, FPIs put in a net Rs 24,053 crore in Indian markets.
Some components that led to funding in July embrace surge in markets which offered FPIs good revenue reserving alternative, enchancment in sentiment on the back of rising hopes of a coronavirus vaccine, said Himanshu Srivastava, affiliate director – supervisor analysis, Morningstar India.
Noting that the funding in July was decrease than that in June, Srivastava said FPIs adopted a “cautious stance” whereas investing in India as COVID-19 circumstances continued to surge whilst many states carried out recent lockdown measure thus fanning considerations that development in the home financial system could possibly be delayed additional.
In the last week of July, FPI flows in rising markets have been combined with South Korea and India receiving constructive flows whereas most of different markets witnessing outflows, said Rusmik Oza, govt vp, head of elementary analysis at Kotak Securities.
“Firm US markets and correction in Dollar Index bodes well for FPI flows into emerging markets,” Oza added.
In the times to return, “surge in coronavirus cases globally, increasing tension between US and China, and sharp rise in coronavirus cases in India with economy still limping may act as a deterrent for foreign investors,” Srivastava famous.
Commenting on home components, Oza said, “Forthcoming results would mainly be from the hard core manufacturing sector which may disappoint. Hence, FPI flows could remain mixed.”