Foreign Portfolio Investors (FPIs) have returned to Indian equities with a strong inflow of Rs 26,565 crore in June, marking a significant turnaround after two consecutive months of net outflows. This surge in investments has been attributed to factors such as political stability and a robust market rebound.

As per data from depositories, FPIs have made substantial net investments in Indian equities this month, reflecting renewed confidence in the country’s economic prospects and market conditions. The influx of funds comes amidst positive sentiment driven by expectations of fiscal stability and upcoming corporate earnings reports.

“Foreign investors have shown renewed interest in Indian markets, driven by political stability and a sharp recovery in market indices,” commented Vipul Bhowar, Director of Listed Investments at Waterfield Advisors. Bhowar highlighted that upcoming events such as the Union Budget and Q1 FY25 earnings will be pivotal in determining the sustainability of FPI flows in the coming months.

The infusion of Rs 26,565 crore by FPIs underscores their confidence in India’s economic recovery and growth potential. The influx of foreign investments is expected to bolster liquidity in the equity markets and support ongoing efforts to stimulate economic activity.

Market analysts anticipate continued momentum in FPI investments, contingent upon favorable policy measures and corporate performance indicators. The resurgence in foreign interest reflects India’s resilience in attracting global capital amidst evolving global economic dynamics.

The positive trend in FPI flows signals a favorable outlook for Indian equities, with investors closely monitoring key economic developments and policy announcements for further cues on market direction.

As India navigates through economic reforms and global uncertainties, the robust inflow of foreign investments in June reflects investor confidence in the country’s long-term growth prospects and market stability.

Looking ahead, stakeholders remain optimistic about sustained FPI interest, underscoring India’s position as an attractive investment destination in the global landscape. The momentum in equity markets is expected to bolster economic recovery efforts and pave the way for inclusive growth in the months ahead.