Foreign portfolio investors (FPIs) pumped in a net Rs 13,667 crore so far in June as Indian markets continued to remain attractive to overseas investors. However, market experts noted that FPIs withdrew money from Indian equities this week. According to depositories data, FPIs invested Rs 15,312 crore in equities between June 1 and June 18. “The US Federal Reserve has signalled that it will start raising interest rates in 2023.
This caused a sell-off on a global level that caused some money to be withdrawn from Indian equities,” said Harsh Jain, co-founder and COO at Groww. However, India is not a destination where investors put in money based on short-term trends. India has always been an attractive spot for FPIs and these short-term trends will have short-term effects only, he added. In the longer horizon, India will continue to get investments as its economy continues to expand, Jain further said. “Of late, INR depreciation is attracting incremental buying interest in IT stocks,” noted VK Vijayakumar, chief investment strategist at Geojit Financial Services. During the same period, overseas investors withdrew Rs 1,645 crore from the debt segment. The total net inflow stood at Rs 13,667 crore. Prior to this, they had pulled out Rs 2,666 crore in May and Rs 9,435 crore in April.