NEW DELHI: Staging a comeback after election results, foreign investors have pumped Rs 12,170 crore in Indian equities so far in June, mainly driven by expectations of continued policy reforms and sustained economic growth.
This came following a net withdrawal of Rs 25,586 crore from equities in May on poll jitters and more than Rs 8,700 crore in April amid concerns over a tweak in India’s tax treaty with Mauritius and a sustained rise in US bond yields.
The total outflow now stood at Rs 11,194 crore so far in 2024 (till June 21), data with the depositories showed. Sunil Damania of MojoPMS, said FPIs inflow will remain constrained due to the high valuations. FPIs had been waiting on the sidelines for the election results. So far in 2024 – barring March (Rs 35,000 crore inflow) – they have been pulling out from India. Early trends indicate FPI buying in financial services, telecom and realty, said V K Vijayakumar of Geojit Financial Services.