FPI Inflows Cross ₹15,156 Crore In July, Improving Macros & Rupee Stability Boost Foreign Investor Confidence

Mumbai: Foreign portfolio investors (FPIs) have turned positive on India again, with total investments reaching Rs 15,156 crore in July (up to July 10). The fresh inflows reflect growing confidence in India's economy and financial markets despite global uncertainties.

According to market data, FPIs invested Rs 5,155 crore through the secondary market. Another Rs 10,001 crore came through the primary market and other investment categories, taking the total inflow to Rs 15,156 crore.

Debt investments continue to strengthen

A major trend this month has been the rise in debt investments by foreign investors.

FPIs invested Rs 3,228 crore through the General Limit route and Rs 6,619 crore through the Fully Accessible Route (FAR). Analysts said changes in the government's taxation of debt investments have made Indian debt instruments more attractive for foreign investors.

Dr V K Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd, said improving macroeconomic indicators and the stability of the Indian rupee have played a key role in attracting foreign funds.

Global factors support India

Analysts also said weakness in the global semiconductor trade and foreign investors reducing exposure to markets such as South Korea have helped redirect investments towards India.

They believe this trend may continue unless geopolitical tensions in West Asia worsen significantly.

Markets remain cautious

Indian equity markets ended last week slightly lower, ending a four-week winning streak. Investor sentiment was affected by renewed tensions in West Asia and a sharp rise in crude oil prices.

Fresh reports of Iran targeting US military installations after recent American strikes briefly pushed Brent crude oil prices above USD 80 per barrel before easing to around USD 76 by the end of the week.

Ajit Mishra, SVP–Research at Religare Broking Ltd, said lower crude prices towards the weekend reduced concerns over imported inflation and external sector risks.

Looking ahead, investors will closely watch macroeconomic data, quarterly corporate earnings and geopolitical developments, which are expected to guide market direction in the coming days.