Latest data made available by National Securities Depository Limited (NSDL) showed that FPIs had bought stocks worth ₹8,915 crore in June so far. In April and May, the FPIs had accumulated stocks worth ₹4,223 crore and ₹19,860 crore, respectively.
New Delhi: Foreign portfolio investors (FPIs) are on course to become net buyers in Indian stock markets for the third straight month in June.
In January, February, and March, they have been net sellers all through. Since April, they turned net buyers in Indian equities.
Latest data made available by National Securities Depository Limited (NSDL) showed that FPIs had bought stocks worth ₹8,915 crore in June so far. In April and May, the FPIs had accumulated stocks worth ₹4,223 crore and ₹19,860 crore, respectively.
Ceasefire between Israel and Iran and the sharp decline in crude triggered a risk-on in global equity markets. Along with this favourable investment scenario, dollar continued to decline and the dollar index dipped to sub-97 level.
FPIs had fueled the latest bull run in the stock market, after a sharp slump.
As per definition, Foreign Portfolio Investment involves an investor buying foreign financial assets.
“Declining dollar is always a positive for emerging market equity; this encouraged FIIs to buy in India. FII buy figure for June, including buying through the exchange and primary market and others category, through 27th stood at ₹8915 crores,” said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
“FIIs were buyers in financials, capital goods and realty stocks and were sellers in FMCG, consumer durables and IT. FII buying has imparted strength to largecaps helping the Nifty and Sensex to scale new highs for 2025. FIIs continued selling in the bond market and this trend is likely to continue given the low yield differential between US and Indian bonds. Ample liquidity and investor optimism have the potential to sustain the rally. However, high valuations are a limiting factor. High valuations can attract profit booking,” Vijayakumar added.
“Declining dollar is always a positive for emerging market equity; this encouraged FIIs to buy in India,” said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd.
According to analysts, FII buying has imparted strength to large-caps helping the Nifty and Sensex to scale new highs for 2025.
FIIs continued selling in the bond market and this trend is likely to continue given the low yield differential between US and Indian bonds.
Ample liquidity and investor optimism have the potential to sustain the rally. However, high valuations are a limiting factor. High valuations can attract profit booking, said Vijayakumar.