New Delhi: With National Securities Depository Limited (NSDL) data showing that Foreign investors infused more than Rs 13,107 crore into Indian equity markets from June 23 to 27, it seems that the Foreign Portfolio Investors (FPIs) are set to become net buyers in Indian stock markets for the third straight month in June.
With foreign investors pumping in money to buy domestic equities last week, it strongly reflected that the investors’ confidence is growing in the Indian domestic market. The NSDL data showed that net inflows by Foreign Portfolio Investors purchased equities worth Rs 8,915 in June so far, while Rs 19,860 crore was pumped in by them in the domestic market in May.
The foreign investors’ growing investment in the Indian stock market can be attributed to the easing of the Iran-Israel tensions which had escalated. Also, the Reserve Bank of India (RBI) recently reducing interest rates by 50 basis points in its latest Monetary Policy Committee (MPC) meeting in June to spur growth also helped in boosting investors’ confidence in the Indian market.
In January, February, and March, the FPIs had turned out to be net sellers throughout. FPIs withdrew Rs 3,973 crore in March, Rs 34,574 crore in February and Rs 78,027 crore in January.
‘Macroeconomic data, US tariff related news to drive stock markets’
Analysts are of the view that the stock market investors would be keenly watching the macroeconomic data announcements such as industrial production, US tariff related developments and other global trends this week and make their move accordingly.
“This week brings a series of important economic data releases from India and the United States, which are likely to influence market sentiment and central bank outlooks. In India, the week begins on June 30 with the release of Industrial Production (YoY) for May.
“On July 1, attention will turn to the manufacturing PMI for June, which reflects the health of India’s industrial sector and order inflows. This will be followed by the services PMI on July 3,” Bajaj Broking Research was quoted by PTI.
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