Foreign investors i.e. FPIs continue to have confidence in the Indian stock market. Foreign investors bought shares worth Rs 15,352 crore till the second week of July. Apart from shares, foreign investors invested Rs 8,484 crore in the debt market i.e. bond market during this period. The flow of FPIs into the Indian market has increased due to the government’s commitment to continue reforms and strong domestic demand.
Foreign investors have bought shares worth so many crores so far
According to the data of the depository, foreign investors invested Rs 15,352 crore in shares till July 12 this month. 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, the total investment of foreign investors in the Indian stock market this year has reached Rs 18,525 crore.
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Invested so many crores in the bond market
Apart from shares, FPIs invested Rs 8,484 crore in the bond market till July 12 this month. 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 In April this year, FPIs had withdrawn Rs 10,949 crore from the bond markets.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 77,108 crore in the bond market.
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Himanshu Srivastava, Associate Director and Manager Research, Morningstar Investment Research India, said that the upcoming Union Budget is the most important event for foreign investors to understand the government’s plans for economic growth.