Foreign portfolio investors (FPIs) are also becoming net buyers of stocks. Earlier, they were doing net selling before the Lok Sabha election results, but after the election results, a change in their attitude is being seen.
Although there was profit booking in the stock market on Friday, but in July, FPIs were net buyers.
Foreign portfolio investors (FPIs) have purchased Indian stocks worth Rs. 30,772 crore as of July. This is the reason the buying continues. The total amount invested by them till 2024 is worth Rs 33,973 crore.
FPIs were net buyers during July too and also purchased Indian shares valued at Rs 26,565 crore while during April and May, they were net sellers selling shares that were worth Rs 8,671 crore and the equivalent of Rs 25,586 crore.
They were also net sellers of the sum of Rs 1,539 crore and 35,098 crore in March and February respectively, following the year in a negative way in January when they had to sell shares valued at 2574 crore.
On Friday Foreign institution investors (FIIs) had net purchases of the sum of Rs 1,506.12 crore, whereas domestic institutions were net sellers, averaging 461.56 crore.
A market analyst said FPIs made a lot of purchases of financial and telecom services during the two weeks that ended June 30.
The analyst noted that they also were buyers in capital goods, automobiles healthcare, and IT but selling remained in the power, mining, and metals sectors because of a stronger-than-expected increase in the past few months.
The analyst said, FPIs have been consistent buyers in July, and their buying has been accelerating in the week ending July 19.
Between July and June 19, the FPIs invested more than Rs. 30,772 crore in equity. Debt investment during this time was Rs 13,573 crore.
He stated that in the period that ended on July 15, FPIs acquired sectors of capital items IT, healthcare telecom, petroleum, and natural gas.
However, he said one of the trends was the absence of spending on financial services which, he claimed, could be the main reason behind the slow performance of the financial services sector so far in July.
He also stated, If the recent trend of a decline in the bond yields and the dollar continues the FPIs are likely to keep buying into the market.
Investors from both the US and abroad are keeping an eye on the potential changes to the long-term capital gains tax that is in the budget due to be announced on July 23rd.
Indian benchmark equity indices closed with a huge decline on Friday due to the decline in the global market. There was profit booking in the stock market on Friday ahead of the Union Budget. Selling was seen in all sectors.
On Friday, the Nifty 50 index closed down 1.09% or 270 points at 24,530, while the S&P Sensex closed down nearly 1% or 739 points at 80,604.65.
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