FPIs invest Rs 43,800 cr during July so far

New Delhi Indian equity markets continue to draw foreign portfolio investments as foreign investors put in Rs43,800 crore in July so far on stable macroeconomic fundamentals, steady earnings growth and challenges faced by the Chinese economy.

With this, inflow in the equity market reached Rs1.2 lakh crore so far this year, data with the depositories showed. Market analysts are of the view that the outlook for FPI inflows into Indian equities remains quite bright and broad-based. The concern, however, is the rising valuations. At high valuations, some negative triggers can lead to a sharp correction, V K Vijayakumar, Chief Investment Strategy at Geojit Financial Services, said. Persistent flows from FPIs have led Indian equity markets to surge to their all-time high levels. Therefore, intermittent profit booking cannot be ruled out going ahead, Himanshu Srivastava, Associate Director - Manager Research at Morningstar India, said. According to the data, FPIs have been continuously buying Indian equities since March and infused Rs43,804 crore this month (till July 21). This also marks the third straight month, when the net flows have surpassed Rs40,000 crore mark. It was Rs47,148 crore in June and Rs43,838 crore in May. This figure includes investment through bulk deals and primary market too, apart from investment through stock exchanges. Before March, overseas investors pulled out Rs34,626 crore collectively in January and February.