The Indian equities market has seen a surge in foreign investments. Foreign Portfolio Investors (FPI) pump RS 47,148 Crore into the Indian Market for June, making it the biggest inflow in the last 10 months. The investment is encouraged by the country’s growing macroeconomic fundamentals. However, the FPI has grown cautious of the recent comment by the US Federal Reserve.   

According to the depositories data, FPI invested a net investment of RS 43,838 Crore in equities in May, Rs 11 631 Crore in April, and Rs 7,936 Crore in March, marking June the highest level in 10 months. 

Regarding sectors, FPIs continue to pick up the threads in automobiles, financials, capital goods, and construction-related equities. Apart from stocks, FPIs pumped around Rs 9,200 crore into the debt market in June. As of now, foreign investors have put in Rs 76,406 crore in the Indian stock market and Rs 16,722 crore in the debt market. 

The driving force behind the sustained FPI flows into India is the turnaround in FPI strategy to “Buy India, Sell China”, followed by the shift in trends in foreign investors pulling away from the Chinese market with concerns over China’s economic recovery.