FPIs return after 9 months, buy ₹5k crore stocks in July

NEW DELHI: After nine consecutive months of selling, foreign investors have turned net buyers of Indian stocks, investing nearly Rs 5,000 crore in July on softening dollar index and strong corporate earnings. This is in sharp contrast to a net withdrawal of Rs 50,203 crore from the stock market seen in June, which was the highest net outflow since March 2020, when foreign portfolio investors (FPIs) had pulled out Rs 61,973 crore from equities.
According to data with depositories, FPIs infused a net amount of Rs 4,989 crore in Indian equities in July. Between October 2021 and June 2022, they sold Rs 2. 46 lakh crore in equities segment.

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Hitesh Jain of Yes Securities expects FPI flows to remain positive during August as the worst for the rupee seems to be over, and oil seems to be confining in a range.
The turning point for the net flows in July was US Federal Reserve Chair Jerome Powell’s statement that currently the US is not in a recession, Himanshu Srivastava of Morningstar India said. However, FPIs pulled out a net amount of Rs 2,056 crore from the debt market in July.