NEW DELHI, Aug. 30: Foreign Portfolio Investors (FPIs) have invested more than Rs 30,900 crore in Indian equities during August, marking another month of strong overseas participation in the domestic stock market.
According to depository data, FPIs invested Rs 30,919 crore in Indian stocks during the month, maintaining their status as net buyers for the second consecutive month. The inflow follows investments of around Rs 20,200 crore recorded in July.
The renewed buying indicates a recovery in foreign investor sentiment towards Indian equities after significant selling pressure earlier in the year.
Market participants are closely monitoring the trend as global investors reassess allocations amid changing interest-rate expectations, commodity prices and geopolitical developments.
Indian equities have also attracted attention because of the country’s relatively strong economic fundamentals and expectations of continued domestic demand. However, volatility remains a concern as rising crude oil prices and developments in global monetary policy could influence investment flows.
The latest foreign investment figures come as Indian markets enter a period of heightened activity, with investors also tracking corporate earnings, economic indicators and changes in global equity benchmarks.
The sustained FPI inflows could provide support to domestic markets, although the direction of overseas investment will remain sensitive to global risk appetite and movements in the US dollar and bond yields.