FPIs inflow at ₹21,944 crore this week in Indian stocks; will July be the best month of 2023?
₹21,944 crore, hinting that these inflows are likely to surpass investments made in June and May this year. FPIs are likely on the path of recording the fifth monthly buying in the Indian market in a row. This foreign funds inflow is driven by a strong rally in Indian markets with Sensex and Nifty 50 hitting new lifetime highs this week.
As per the NSDL data, FPIs have invested ₹21,944 crore in Indian equities from July 3rd up to July 7th. This strong buying is in a matter of one trading week. This is already 46.54% of the total inflow of ₹47,148 crore recorded in June 2023, and 50.05% of the total investments of ₹43,838 crore made in May 2023.
As of now in the current year, June is the best month with most buying from FPIs. Explaining the reason behind the strong inflow from FPIs, Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said, "This U-turn in FPI flows which were negative ₹34626 crore in January and February (combined) this year has been the primary driver of the strong rally that we are witnessing in the market since the lows of March." He added, "FPIs have been steadily buying in financial services, automobiles, capital goods, and construction.
Recently they have stepped up buying in FMCG and power. The selling trend in IT continues." According to Vijayakumar, FPIs strategy is focused more on country-specific factors rather than sectoral prospects within a country. That’s why they adopted the ‘Sell India, Buy China’ strategy in Jan and February.
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