After four consecutive months of net selling, Foreign Portfolio Investors (FPIs) have turned net buyers in the Indian equity market. According to the latest depository data, FPIs have invested ₹11,897 crore in domestic equities so far this month.
The shift in investor sentiment is attributed to weakness in the global semiconductor trade, which has prompted FPIs to reallocate a part of their investments towards emerging markets, including India. The renewed buying interest has also been supported by improving domestic macroeconomic indicators and robust corporate earnings. However, FPIs withdrew ₹3,260 crore from Indian equities during the previous week.
Meanwhile, India's debt market continues to witness strong foreign inflows following changes in the government's taxation policy. In July so far, FPIs have invested ₹7,492 crore in debt securities through the Fully Accessible Route (FAR) and ₹4,480 crore through the general route, reflecting sustained confidence in the country's fixed-income market.
