About ₹ 33,660 crore has been invested through the FII route in Indian stocks so far this month on the premise of further policy changes, steady economic growth, and a much better-than-anticipated earnings result.
However, the inflows have also witnessed some turbulence recently, when FPIs sold over ₹7,200 crore in equities in the last three trading sessions, which included July 24 to July 26, after the government increased taxes on F&O and capital gains from equities in the Budget.
Hence, analysts are of the view that the Indian equity market can attract foreign investors for the year and expect some monthly fluctuations because of short-term news effects.
Based on the inter-depository data, till July 26, FPIs have bought ₹33,688 crore of equities in the current month. This came after ₹26,565 crore came in June on the back of political stability and the stunning recovery in markets.
Analysts have opined that recent FPI inflows have been caused by improvement in India’s economy, better corporate earnings compared to expectations, and rising expectations of a rate cut in the USA Federal Reserve in September.
