New Delhi [India], July 31 (ANI): After nine long months, foreign portfolio investors have again become net buyers in Indian equity markets. In July, FPIs bought equities worth Rs 4,989 crore, National Securities Depository (NSDL) data showed.
“Hopefully FPI selling appears to have bottomed out as FPI have bought 5 days in this month,” said Om Mehra, Technical Associate at Choice Broking.
September 2021 was the last when the foreign investors were net buyers.
So far in 2022, they sold a total of Rs 225,319 crore investments in India, of which Rs 212,369 were from the equity segment.
Tightening of monetary policy in advanced economies including rising demand for dollar-denominated commodities, and strength in the US dollar had triggered a consistent outflow of funds from Indian markets.
Investors typically prefer stable markets in times of high market uncertainty.
Further, consistent depreciation of the rupee as well as depleting Indian foreign exchange reserves too had a bearing on the weak market sentiments. India’s forex reserves in the past six-to-seven months have declined by over USD 40 billion.
Bucking the recent trend, Indian equity markets recorded their best weekly performance during the week to July 22 marking its best week since February 2021, supported by renewed buying, especially in banking and IT stocks, among others. The Indian stocks have rallied for two consecutive weeks on a trot now.
During the past two weeks, Sensex and Nifty rose over 7 per cent on a cumulative basis. (ANI)
This report is auto-generated from ANI news service. ThePrint holds no responsibility for its content.
Source: The Print
