Foreign portfolio investors show confidence with ₹21,944 crore inflows to indian equities till second week of July

livemint.com:

Foreign portfolio investors (FPIs) continued to sell Indian equities this week, with net inflows of ₹2,636.43 crores on July 14, 2023. This brings the total net inflows for the month to ₹14,582.63 crores. The inflow was broad-based, with inflow seen across all sectors.

The biggest sectoral inflows were from the Capital Goods ( ₹3,32,484 crores), Capital Goods ( ₹1,81,554 crores), and Chemicals ( ₹1,01,059 crores) sectors, as of 30th June 2023. The rising interest rates in the US, which have made Indian equities less attractive to foreign investors is one of the of factors that could be contributing to the recent sell-off in FPI flows. Despite the recent sell-off, FPI flows remain positive for the year, with net inflows of ₹101,416 crores ($12,183 million).  The stocks FPI were interested mainly in buying were BSE-S0003096" data-name="Escorts Kubota">Escorts Kubota, Gujarat Fluoroch, Timken India, RHI Magnesita, and Data Pattern and more.

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services commented," FPI flows into India are continuing unabated. The decline in the dollar index to below 100 on Friday, the lowest level in one year, is favourable to emerging markets. India is the largest recipient of FPI flows YTD among emerging markets.

The selling in China continues and FPIs were sellers in EMs like Thailand and Vietnam also recently." In July, through 14th, FPIs have invested ₹30660 crores in India. This figure includes investment through bulk deals and primary market, too, apart from investment through stock exchanges. (Source: NSDL) FPIs continue to invest in financials, automobiles, capital goods, realty and FMCG.