InvestorQ : How has been the FPI flows into Indian equities during the month of June 2020?
diksha shah made post

How has been the FPI flows into Indian equities during the month of June 2020?

Answer
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Archita Jajjoo answered.
3 months ago


The FPI flows into India began with a bang in the first two weeks but have since tapered in the third week. Foreign portfolio investors or FPIs infused Rs.17,985 crore into Indian equities in the first three weeks of June.

The infusion was over Rs.20,527 crore in the first two weeks of the month and there was net selling by FPIs in the third week due to uncertainty over the Indo-China border situation. This geopolitical situation at the border is pushing FPIs to reconsider equity flows into India.

FPIs had been net sellers in the months of March, April and May but the massive infusion of liquidity by central banks resulted in risk-on flows into emerging markets in June and India was one of the key beneficiaries.

FPI flows have been pronounced in selected sectors like personal products, telecom and hydrocarbons space. FPIs continued to be wary on Indian debt. Indian debt has seen outflows even as other Asian markets have seen inflows from FPIs.