NEW DELHI: Last week, foreign portfolio investors injected Rs 3,346.94 crore into Indian equity markets, data by National Securities Depository Limited (NSDL) said.
The move was driven by optimistic sentiment following the Reserve Bank of India’s (RBI) interest rate reduction.
Despite the week’s positive inflows, June’s overall FPI investment remains negative as the NSDL data said the FPIs have withdrawn Rs 5,402 crore from Indian equity markets in June thus far.
However, FPIs withdrew Rs 3,275.76 crore from Indian equities on Friday, the final trading session. This substantial withdrawal reduced the week’s net investment to the net figure.
Notably, in the June Monetary Policy Committee (MPC) announcement, the RBI decided an unexpected 50 basis points rate reduction, with the repo rate decreased to 5.5 per cent, strengthening investor confidence.
In May, there were positive net foreign portfolio investment (FPI) inflows of Rs 19,860 crore, establishing it as the strongest month for foreign investment this year.
Previous data indicated FPIs sold shares worth Rs 3,973 crore in March, and had additionally sold equities valued at Rs 78,027 crore and Rs 34,574 crore in January and February, respectively.
Agencies