3 days ago
Foreign Portfolio Investors Buy ₹30,918 Crore as Markets Stay Cautious
Foreign investors bought many Indian shares during August.
Their purchases totaled ₹30,918 crore through August 29.
This was the second month in a row that they bought more shares than they sold.
Analysts said the stable rupee and better company earnings helped attract their money.
Foreign investors also preferred smaller and medium-sized companies.
Indian domestic institutions bought shares worth about ₹5,184 crore on Friday, helping support the market.
However, investors were worried about interest rates, geopolitics and a new way of setting some closing prices.
The Nifty and Sensex both ended lower for the third week in a row.
Mid-cap and small-cap shares still gained during the week.
Foreign portfolio investors bought ₹30,918 crore of Indian equities through August 29.
₹18,790 crore was invested through exchanges and ₹12,128 crore through primary-market and other transactions.
The purchases marked a second consecutive month of foreign investors being net buyers in India.
Analysts attributed the inflows to a reversal in the chip trade, rupee stability and improving Indian earnings.
The Nifty and Sensex fell for a third straight week despite a Friday recovery and gains in mid- and small-cap stocks.
- Who
- Foreign portfolio investors, domestic institutional investors and participants in Indian equity markets.
- What
- FPIs bought ₹30,918 crore of Indian equities through August 29, while benchmark indices declined for a third consecutive week.
- Where
- Indian equity markets.
- When
- During August through August 29, with market performance reported for the week ending Friday.
- Why
- Inflows were linked to a reversal in the chip trade, rupee stability and improving Indian earnings; market caution reflected global interest rates, geopolitical uncertainty and Closing Auction Session volatility.
Signals of Stronger Investment Interest
Reasons for Market Caution
Foreign-investor flows
Signals of Stronger Investment Interest
Gross FPI purchases of ₹30,918 crore and a second consecutive month of net buying indicate a renewed interest in Indian equities.
Reasons for Market Caution
Analysts described month-to-date FII buying as marginal, at about ₹454 crore, suggesting the overall shift remained limited after several months of selling.
Mid- and small-cap shares
Signals of Stronger Investment Interest
Higher growth and earnings momentum in mid- and small-cap companies could continue attracting foreign investment, while these indices gained during the week.
Reasons for Market Caution
Selective foreign selling and concerns about short-term volatility continued to weigh on parts of the market.
Market outlook
Signals of Stronger Investment Interest
Domestic institutional buying and positive global technology cues supported a sharp Friday recovery, particularly in IT stocks.
Reasons for Market Caution
The Nifty and Sensex fell for a third consecutive week amid interest-rate concerns, geopolitical uncertainty and volatility linked to the new Closing Auction Session.
Key facts
- Total FPI purchases
- ₹30,918 crore through August 29
- Exchange purchases
- ₹18,790 crore
- Primary market and other purchases
- ₹12,128 crore
- Domestic institutional purchases
- Approximately ₹5,184 crore on Friday
- Nifty 50 weekly close
- 24,175.65, down approximately 0.31%
- BSE Sensex weekly close
- 77,264.51, down approximately 0.36%
- Month-to-date FII position
- Marginal net buyers at approximately ₹454 crore
Sources
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