Winning Bizness Desk

Mumbai. Foreign portfolio investors (FPIs) have been buying aggressively in Indian stocks in the first two weeks of August. Last month, FPIs again became net buyers in the Indian stock market after a long gap. Foreign investors poured Rs 22,452 crore into the stock markets in the first two weeks of August amid easing inflation concerns. Earlier in the month of July, FPIs had put in about Rs 5,000 crore in equities, according to depository data. In July, FPIs became net buyers for the first time after nine consecutive months of withdrawals. They have been a constant seller since October last year. Foreign portfolio investors sold shares worth Rs 2.46 lakh crore from October 2021 to June 2022.

Will see further improvement

Shrikant Chauhan, Equity Research (Retail), Kotak Securities, said FPI inflows to emerging markets will see further improvement going forward due to easing of inflation concerns and tightening of monetary stance by central banks. According to official data, the rate of retail inflation has come down to 6.71 per cent in July.

Retail inflation comes down

However, it still remains above the RBI's satisfactory level of 6 per cent. Retail inflation has come down due to reduction in food prices. At the same time, inflation in America has come down from a 40-year high to 8.5 percent in June. This indicates that the US central bank, the Federal Reserve, will not further tighten its monetary stance. Notably, the market capitalization (market cap) of six of the top 10 Sensex companies have collectively increased by Rs 1,56,247 crore in the last week. Reliance Industries has benefited the most during this period.