After four consecutive months of selling, Foreign Portfolio Investors (FPIs) have turned net buyers of Indian equities. According to the latest depository data, FPI’s have invested 11 thousand 897 crore rupees in the domestic stock market so far this month. Weakness in the global semiconductor trade has prompted FPI’s to shift a part of their investments towards emerging markets. The renewed buying interest also supported by improving domestic macroeconomic indicators and strong quarterly earnings report. However, FPIs pulled out 3 thousand 260 crore rupees from Indian equities last week.

 

Meanwhile, India’s debt market continued to attract strong foreign interest following changes in the government’s taxation policy. So far in July, Foreign Portfolio Investors have invested 7 thousand 492 crore rupees in debt securities through the Fully Accessible Route (FAR) and 4 thousand 480 crore rupees through the general route.