Foreign Portfolio Investors (FPIs) have continued to show robust interest in Indian financial markets, injecting Rs 7,962 crore into equities and Rs 6,304 crore into debt instruments so far this month, as reported by market analysts citing NSDL data.
In the current year, FPIs have significantly bolstered their equity holdings with investments totaling Rs 11,162 crore, while their contributions to the debt segment have been substantial at Rs 74,928 crore over the same period.
Market experts attribute this divergence in investment patterns to several factors, including the recent inclusion of Indian government bonds in the JP Morgan Emerging Markets Government Bond Index.
This move has spurred heightened interest among global investors, prompting a surge in debt inflows compared to equity.
Milind Muchhala, Executive Director at Julius Baer India, underscored India’s appeal as an attractive investment destination amidst favorable economic indicators and robust earnings growth.
He emphasized that India remains poised to benefit significantly from global market dynamics, especially in a scenario favoring emerging market equities due to anticipated rate cuts.
During the fortnight ending 30 June, FPI activities reflected targeted investments across various sectors.
Telecom and financial services witnessed substantial buying, while sectors such as autos, capital goods, healthcare, and IT also attracted FPI interest.
Conversely, profit-taking was observed in sectors like metals, mining, and power, which had seen rapid appreciation in recent months.
The ongoing trends in FPI investments underscore India’s resilience and attractiveness in the global investment landscape, with expectations of continued inflows supported by positive economic fundamentals and sector-specific growth prospects.
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