Foreign investors infuse Rs 15,420 crore in Indian markets this week

The foreign portfolio investors have infused Rs 15,420 crore so far this week in the Indian equity market, according to the data from the National Securities Depository. The net investment by the foreign portfolio investors (FPI) surged to Rs 30,772 crore so far in July indicating the good buying by the foreign investors in the Indian markets.

The foreign investors have so far bought equities worth of Rs 1,30,138 crore this year. "FPI flows are expected to remain volatile this week. The markets were strong, led by strong earnings and commentary from the large-cap. This week, the markets of India, Brazil, Indonesia, Malaysia, Philippines, and South Korea witnessed inflows, while the markets of Taiwan, Thailand and Vietnam witnessed outflows" said Shrikant Chouhan, Head of Equity Research, Kotak Securities.

Internationally the foreign investors this week have injected around $585 million in Brazil, $300 million in Indonesia, $324 million in Malaysia and $2,085 million in South Korea. On the other hand, Taiwan witnessed an outflow of $5325 million and Vietnam witnessed a selling of $278 million of foreign investment this week.

According to market experts, foreign investors are investing in Indian markets amid a weakening in dollar and bond yields, and if this trend continues, foreign investment will continue as well.

"During the fortnight ending 15th July, FPIs were buyers in autos, capital goods, healthcare, IT, telecom, and oil and gas. A notable trend was the lack of buying in financial services, which partly explains the poor performance of financial services in July so far. If the recent trend of weakness in dollar and bond yields persists, FPIs are likely to continue their buying in the market," said V K Vijayakumar, Chief Investment Strategist, at Geojit Financial Services.

Foreign Institutional investors were sellers in January, April, and May, cumulatively selling equities worth around Rs 60,000 crores. However, they were buyers in February, March, and June, with cumulative purchases amounting to Rs 63,200 crores.