Foreign Portfolio Investors return to Indian equities in July

Foreign Portfolio Investors (FPIs) returned to buying Indian equities in July, marking a significant shift after four consecutive months of selling. This renewed interest saw FPIs invest a net Rs 20,200 crore in the Indian stock market during July.

Despite the positive inflow in July, overseas investors have collectively withdrawn Rs 2.54 lakh crore from Indian equities between January and July. The last month FPIs were net buyers of equities was February, when they invested Rs 22,615 crore.

Alongside their renewed interest in equities, foreign investors continued to demonstrate a strong appetite for Indian debt. They invested Rs 29,212 crore under the general debt route and Rs 3,033 crore through the debt-VRR route in July. However, they also withdrew Rs 13,584 crore from debt instruments under the VRR category during the same month.

Overall, net foreign portfolio investment across all asset classes reached Rs 40,031 crore in July. This figure represents the strongest monthly inflow of the calendar year to date, encompassing investments in equities, debt, hybrid instruments, mutual funds, and alternative investment funds.