FPI inflows at Rs30,600 cr in Jun so far

New Delhi: Foreign portfolio investors (FPIs) continue to show confidence in Indian equities and pumped more than Rs30,600 crore in June so far, as they bet on the country’s stable macroeconomic profile and sturdy corporate earnings outlook. This came following a nine-month high investment of Rs43,838 crore in equities in May, Rs 11,631 crore in April and Rs 7,936 crore in March, data with the depositories showed. Before that, FPIs had pulled out over Rs 34,000 crore during January-February. Going forward, fund inflows could turn volatile, especially after the US Fed reiterated its stance that more interest rate hikes may be needed to bring inflation below its target, albeit at a slower pace, Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities, said. Further, the Bank of England hiking interest rates by 50 basis points could caution investors, especially the FPIs, as the rising valuation of Indian markets could become a challenge, he added.