FPIs Invest Rs 32,365 crore in equities in July on continued policy reforms: Foreign investors have shown a mixed attitude since the announcement of increase in capital gains tax on equity investments in the budget for the year 2024. Last month, the total investment of foreign investors in the Indian stock market was Rs 32,365 crore. In the first two trading sessions of August, foreign investors sold shares worth Rs 1,027 crore. Apart from shares, they invested Rs 22,363 crore in the bond market during July 2024. This information has been received from the data of the depository.
Due to the expectation of continued policy reforms, sustained economic growth and better than expected quarterly results of companies, foreign investors i.e. FPIs bought shares worth Rs 32,365 crore in July this year. However, till August 2 this month, foreign investors sold shares worth Rs 1,027 crore. Foreign investors’ investment has been declining since July 23. The attitude seems to be mixed. During July, FPIs have invested Rs 22,363 crore in the bond market i.e. debt market.
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How much has FPI invested in the Indian stock market so far in 2024
According to depository data, foreign portfolio investors (FPIs) have invested a net Rs 32,365 crore in shares in July. Earlier in June, FPIs had invested Rs 26,565 crore in shares. At the same time, due to confusion about the elections, foreign investors withdrew Rs 25,586 crore from the stock market in May. Due to changes in India’s tax treaty with Mauritius and concerns about rising bond yields in the US, FPIs withdrew more than Rs 8,700 crore from shares in April. Earlier, FPIs had made a net investment of Rs 35,098 crore in shares in March and Rs 1,539 crore in February, while in January they withdrew Rs 25,743 crore. Overall, foreign investors’ investment in the Indian stock market so far in 2024 is Rs 35,538 crore.
How much money did FPI invest in the bond market
According to the data, in July 2024, foreign investors have invested Rs 22,363 crore in the bond market. Earlier in June, foreign investors had invested Rs 14,955 crore in the bond market. In May 2024, FPIs had invested Rs 8,761 crore. In April this year, FPIs had withdrawn Rs 10,949 crore from the bond markets. In the bond market, foreign investors had invested Rs 13,602 crore in March, Rs 22,419 crore in February and Rs 19,836 crore in January. Overall, so far in 2024, foreign investors have invested Rs 87,197 crore in the bond market. Overall, so far in 2024, foreign investors have invested Rs 94,628 crore in the bond market.
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What do experts say
VK Vijayakumar, chief investment strategist at Geojit Financial Services, said developments in the US economy and markets will determine the trend of FPI activity in August.
Vaibhav Porwal, co-founder of Deserve, said, “After the slowdown in the economy and weak employment data, it is certain that the US Federal Reserve may cut interest rates in September. The important question is how much the cut will be. So far it is being estimated that a cut in interest rates by 0.50 percent is possible.
In April, they had withdrawn over Rs 8,700 crore from equities amid concerns over changes in India’s tax treaty with Mauritius and the continued rise in US bond yields.
Himanshu Srivastava, Associate Director – Manager Research, Morningstar Investment Research India, said that the reason for the increase in FPI flow is the government’s focus on infrastructure development, better than expected quarterly results and sustained economic growth. He said that apart from this, the International Monetary Fund (IMF) and the Asian Development Bank (ADB) have increased the estimate of India’s gross domestic product (GDP) growth rate. At the same time, China’s growth rate estimate has been reduced. This has also gone in India’s favor.
