Foreign investors infuse Rs 1,209 cr in Indian equities this week, net June outflow at Rs 4192 cr: NSDL

MUMBAI: Foreign investment in the Indian equity market remained positive during the week from June 16 to June 20, though the net inflows declined compared to the previous week, as per the latest data released by the National Securities Depository Limited (NSDL).

According to the data, foreign investors made net inflows worth Rs 1,209 crore in Indian equities this week. The inflows were largely supported by significant buying activity on Wednesday and Friday. Market experts attributed this trend to foreign participation in several block deals offered during the week, along with notable inflows on Friday due to the FTSE rebalancing.

Siddhartha Khemka, Head Research, Wealth Management, Motilal Oswal Financial Services said, “FPI inflows this week has been driven by buying seen in several blocks offered during the week as well as large inflows on Friday due to FTSE rebalancing. Overall Indian economy stands strong driven by healthy economic growth multi year low inflation, rate cut by RBI as well as prospects of a above normal monsoon”.

Despite the positive movement this week, foreign portfolio investment (FPI) flows for the month of June so far continue to remain in the negative. As of June 20, the net outflows by foreign investors stood at Rs 4,192 crore. However, this is an improvement from the previous week (ending June 13), when net outflows were higher at Rs 5,402 crore. This reduction in outflows reflects some signs of stabilization in FPI sentiment.

Khemka added that the recent inflows are being driven by India’s strong economic fundamentals. These factors are collectively boosting investor confidence and encouraging selective foreign investment, even amid global uncertainties.

Looking ahead, he suggested that both global and domestic factors will influence FPI trends in the coming week. Key global triggers include geopolitical developments, fluctuations in crude oil prices amid tensions in middle east, and the approaching deadline for the imposition of US reciprocal tariffs.

On the domestic front, important drivers will be macroeconomic indicators, institutional buying support, and sector-specific triggers such as monsoon progress, consumption trends, and infrastructure push. These elements are expected to determine stock specific movements and FPI behaviour in the short term.

Earlier in May, the net foreign portfolio investment (FPI) inflows remained in positive and stood at Rs 19,860 crore, making May the best-performing month so far this year in terms of foreign investment. The previous months’ data also showed that FPIs had sold stocks worth Rs 3,973 crore in March. In January and February, they had sold equities worth Rs 78,027 crore and Rs 34,574 crore, respectively. (ANI)