FPIs continue shopping in Indian Equities

Indian equity markets witnessed a buying spree in the first half of June wherein foreign investors have poured in over Rs 3727 crores into the equities amid robust Q4 earnings, positive macroeconomic data and ahead of a favourable monsoon. The foreign investors have pulled out Rs 1833 crore from debt market leading to a total inflow of Rs 1893 crore according to the depositors.

India’s GDP has grown at 7.9 per cent quarter on quarter while annual GDP stands at 7.6 per cent which was the highest in last 5 years. Moreover, Governor’s assurance that inflation target of 5 per cent would be achieved by the end of 2017 added to the optimistic sentiments.

The production of eight core sectors has grown 8.5 per cent in April in the wake of a pick-up in output of refinery products, fertilisers, steel, cement and electricity, which have boosted the trading bias.

Earlier markets saw a total of 32000 crore of investment from March to May. It was after the foreign portfolio investors who had been net sellers in the previous four months from November 2015- February 2016. The actual amount pulled out by the FPIs amounted to Rs 41661 crore.

According to the 2016 data, FPIs have invested Rs 19,180 crore in equities; while have withdrawn Rs 7,181 crore in the debt market, resulting in a net inflow of Rs 11,999 crore.