New Delhi:
In reversal of a two-month selling trend, foreign portfolio investors (FPIs) in June turned out to be net buyers by investing a net Rs 13,269 crore in Indian markets.
This could be attributed to improvement in investor sentiments on the back of consistently falling coronavirus cases in the country and hopes of an early opening of the economy, said Morningstar India Associate Director (Manager Research) Himanshu Srivastava.
This, coupled with good quarterly results and a positive earnings growth outlook over the long term, refuelled FPI interest in Indian equities, he added.
According to depositories data, FPIs invested Rs 17,215 crore in equities between June 1 and June 30.
As regards the debt segment, FPIs on the contrary withdrew Rs 3,946 crore.
Net investment during the period under review stood at Rs 13,269 crore.
Prior to this, overseas investors had pulled out Rs 2,666 crore in May and Rs 9,435 crore in April.
LKP Securities Head (Research) S Ranganathan said, ''June witnessed a gradual opening up of the localised lockdown seen in April and May and FPI's bought stocks across sectors like information technology, fintech and insurance which was broad-based across large-caps and mid-caps.''
Kotak Securities Executive Vice-President (Equity Technical Research) Shrikant Chouhan said most emerging economies and Asian markets have seen FPI inflows this month to date, except for Taiwan, South Korea and Phillipines.
Among emerging markets, India witnessed the highest FPI inflows of USD 1,498 million, followed by Indonesia (USD 342 million). On the other hand, Taiwan witnessed the highest FPI outflows of USD 1,814 million, South Korea USD 792 million and Phillipines USD 79 million, he added.
Geojit Financial Services Chief Investment Strategist V K Vijayakumar said, ''Going forward, FPIs may continue to book profits in India. However, they are unlikely to sell aggressively in India, in spite of higher valuations, since India Inc is all set to report excellent numbers in FY22.''
Meanwhile,Two companies Clean Science and Technology and GR Infraprojects are headed to the market with their initial share-sale offers next week to raise a little over Rs 2,500 crore cumulatively.
The companies are expecting to benefit from an equity market, which is swarmed with liquidity and a sharp increase in the number of new retail investors.
This comes after five companies Shyam Metalics and Energy, Sona BLW Precision Forgings (Sona Comstar), Krishna Institute of Medical Sciences, Dodla Dairy and Indian Pesticides launched their initial public offers (IPOs) last month. These firms collectively raised Rs 9,923 crore through public issues.
So far this year, 22 firms have come out with their IPOs to raise Rs 27,426 crore. Apart from this, companies including Utkarsh Small Finance Bank and Glenmark Life Sciences, Rolex Rings and Seven Islands Shipping have received Sebi's go ahead to float the IPO.
Moreover, around 19 companies are awaiting Sebi's approval to launch the initial share-sale, data with Sebi showed.