Foreign portfolio investors (FPIs) have taken a U-turn in the Indian market for the first time in the new financial year. Having been continuously selling since the beginning of the financial year, FPIs focused on buying in the Indian market in June. They bought Indian equities worth more than Rs 26 thousand crore in the third month of the financial year.
Selling Happened In The First Two Weeks Of June
According to National Securities Depository Limited (NSDL) data, FPIs bought Indian shares worth Rs 25,565 crore in June. The attitude of foreign portfolio investors has changed in the last two weeks of June. Before that, during the first two weeks, the selling phase of FPOs that had been ongoing for the last two months seemed to be continuing.
FPIs Became Buyers For The First Time In The Financial Year
In the first two weeks of June, FPIs sold shares worth about Rs 15 thousand crore. Before that, in May, foreign portfolio investors sold Indian shares worth Rs 25,586 crore. At the same time, in April’s first month of the current financial year, FPIs were sellers of Rs 8,671 crore. In this way, after being sellers for two consecutive months, FPIs have become buyers in June.
Still Selling According To The Whole Year
FPIs sold Indian shares worth Rs 25,744 crore in January 2024, the first month of the year. However, they remained buyers for two months after that. In February 2024, FPIs bought shares worth Rs 1,539 crore. After that, in March, FPIs bought shares worth Rs 35,098 crore. But after that, they started selling again.
FPIs Changed Their Stance Due To These Reasons
In June, FPIs returned to buying when the total budget for the financial year 2024-25 was presented in a few days. Finance Minister Nirmala Sitharaman will present the full budget during the third week of the month starting tomorrow. Before that, JM Financial included Government of India bonds in its index, encouraging FPIs to change their stance.
