Foreign Investors Infuse Rs 26,565 Crore into Indian Equities in June Amid Market Rebound

In June, after two months of net outflow, foreign investors turned into buyers, infusing Rs 26,565 crore in Indian equities. This was driven by political stability and a sharp rebound in markets. Looking ahead, attention will gradually shift towards the budget and Q1 FY25 earnings, which could determine the sustainability of FPI flows, according to Vipul Bhowar, Director, Listed Investments, Waterfield Advisors. Data from the depositories shows that foreign portfolio investors (FPIs) have made a net infusion of Rs 26,565 crore in equities this month. This follows a net outflow of Rs 25,586 crore in May and over Rs 8,700 crore in April. Before that, FPIs made a net investment of Rs 35,098 crore in March and Rs 1,539 crore in February, while they took out Rs 25,743 crore in January. The net outflow now stands at Rs 3,200 crore in the month, as per the data with the depositories. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, stated that political stability, despite the BJP not getting a majority on its own, and the sharp rebound in markets have led to FPIs turning buyers in India, aided by steady domestic institutional investors (DIIs) buying and aggressive retail buying.