Foreign portfolio investors (FPIs) have continued to invest in Indian equities for a fourth straight month, injecting Rs 16,405 crore in June so far on the country’s strong economic rebound and positive growth outlook.
The latest figures from the National Securities Depository (NSDL) showed that FPIs have pumped in Rs 16,405 crore in Indian equities during June 1-16, taking the total investment in the current financial year so far to Rs 2.93 lakh crore.
In the previous financial year, FPIs had net invested Rs 5.34 lakh crore in Indian equities.
The strong FPI inflows have helped the benchmark Nifty 50 index to surge over 10% so far in June, while the Sensex has gained over 12%.
Analysts say that FPIs are bullish on India due to the country’s strong economic rebound, which is expected to continue in the current fiscal year.
The Indian economy grew at a robust 8.7% in the fourth quarter of 2021-22, and is expected to grow at 7.5% in the current fiscal year.
The government has also taken a number of steps to boost economic growth, such as the introduction of the Production-Linked Incentive (PLI) scheme, which is expected to attract $20 billion in investments in the next five years.
In addition, the government has also announced a number of reforms, such as the merger of the Reserve Bank of India (RBI) and the Deposit Insurance and Credit Guarantee Corporation (DICGC), which are expected to improve the ease of doing business in India.
All these factors are expected to continue to attract FPIs to Indian equities in the coming months.
