FPIs turn net buyers of Indian equities after four months

After four consecutive months of selling, Foreign Portfolio Investors (FPIs) have turned net buyers of Indian equities. According to the latest depository data, FPIs have invested 15 thousand 157 crore rupees in the domestic stock market so far this month. Weakness in the global semiconductor trade has prompted FPIs to shift a part of their investments towards emerging markets. The renewed buying interest was also supported by improving domestic macroeconomic indicators, stable crude oil prices, and strong quarterly earnings reports.
 
Meanwhile, India’s debt market is expected to attract strong foreign interest following changes in the government’s taxation policy. So far in July, Foreign Portfolio Investors have invested 6 thousand 625 crore rupees in debt securities through the Fully Accessible Route (FAR) and 3 thousand 228 crore rupees through the general route.