FPIs extend buying streak in Indian equities, infuse ₹43,804 crore in July so far; check details

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₹43,804 crore in July so far, showed NSDL data. FPIs have infused a massive ₹43,131 crore in Indian markets so far this month, taking into account debt, hybrid, debt-VRR, and equities, according to exchange data. FPIs are likely on the path of recording the fifth monthly buying in the Indian market in a row.

The foreign funds inflow was driven by a strong rally in Indian markets with Sensex and Nifty 50 hitting new lifetime highs this week. Foreign institutional investors (FIIs) pumped ₹3,371 crore in Indian stocks on July 20. However, on Friday, FIIs turned net sellers and offloaded ₹1,998.7 crore as markets snapped its six-day winning streak dragged by IT stocks and industry heavyweights Reliance Industries and Hindustan Unilever Ltd.

FIIs have pulled off a 700 point rally in the Nifty since the 3rd of this month at the start of the earnings season for the first quarter, according to analysts. Also Read: Nifty rallies 15% in FY24 so far, on track to hit 20,000-mark led by Q1 earnings, FII momentum Analysts say that India is the largest recipient of FPI flows YTD among emerging markets. ‘’In July, through 21st FPIs have invested ₹43,804 crore in India.

This figure includes investment through stock exchanges, primary market and bulk deals,'' said analysts. ‘’FPIs continue to invest in financials, automobiles, capital goods, realty and FMCG. FPI buying in these sectors have contributed hugely to the surge in prices of stocks in these sectors and the Sensex and Nifty scaling record highs,'' said Dr.

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. ‘’The concern, however, is the rising valuations. At high valuations some negative triggers can lead to sharp correction.