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New Delhi Foreign portfolio investors (FPIs) continued to invest in Indian equities for a fourth straight month as they injected Rs16,405 crore in June so far on the country’s strong economic rebound and positive growth outlook. FPI flows touched a nine-month high of Rs43,838 crore in equities in May, Rs11,631 crore in April, and Rs7,936 crore in March, data with the depositories showed.
Before that, FPIs had pulled out over Rs34,000 crore during January-February. “Considering the current investment trend, it is expected that FPIs will continue to show interest in the Indian market throughout the month,” Mayank Mehraa, Smallcase manager and principal partner at financial consultancy Craving Alpha, said. The ongoing economic recovery, positive corporate earnings, and supportive policy environment are likely to sustain the inflow of funds, he added. However, valuation could become a concern as Indian markets continue to surge and stricter regulatory norms could also check foreign money flowing into India to some extent, Himanshu Srivastava, Associate Director - Manager Research, Morningstar India, said.
According to the data, FPIs invested a net sum of Rs16,406 crore in Indian equities during June 1-16. Market experts believe that India’s strong economic rebound and positive growth outlook have caught the attention of foreign investors. The sustained investment by FPIs is a reflection of their increasing confidence in the resilience of the Indian economy and the potential earnings of the corporate sector, VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.
