FPIs Sustain Bull Run in Indian Stock Markets for Third Consecutive Month

Foreign portfolio investors (FPIs) continue to inject confidence into Indian stock markets, maintaining their status as net buyers for the third consecutive month in June. This marks a notable reversal from the beginning of the year when FPIs were net sellers during January, February, and March, indicating growing optimism.

According to recent data from the National Securities Depository Limited (NSDL), FPIs have invested Rs 8,915 crore in June, demonstrating their positive stance towards Indian equities. The trend began in April with an investment of Rs 4,223 crore, followed by a substantial Rs 19,860 crore in May. These investments have been pivotal in driving the stock market upswing following a significant downturn.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, highlights that a weakening dollar has been advantageous for emerging market equities, prompting increased FII activity in India. FPIs have shown a preference for financials, capital goods, and realty stocks, while offloading positions in FMCG, consumer durables, and IT. Despite liquidity and investor confidence bolstering the rally, high valuations may temper continued market gains, as profit-booking becomes an eventual possibility.

(With inputs from agencies.)