FPIs turn net buyers, pump in Rs 4,000 crore in July
The net inflow by FPIs in the stock markets stood at Rs 3,168 crore from July 1-10
New Delhi: After pulling out hefty amount of funds from capital markets in the last two months, overseas investors have turned net buyers in July and pumped in over Rs 4,000 crore on hopes that Greece will remain in the eurozone.
The net inflow by Foreign Portfolio Investors (FPIs) in the stock markets stood at Rs 3,168 crore from July 1-10. It was Rs 905 crore for the debt markets, translating into a net inflow of Rs 4,073 crore, according to data available with the depositories. FPIs' net outflow was over Rs 1,600 crore from the capital markets (debt and equities) last month, while they withdrew Rs 14,272 crore in May.
According to market experts, foreign investors are betting that Greece will strike a deal with creditors by this Sunday. It has recently submitted an economic reform proposal to creditors. The move has created hopes among investors that Greece will be able to secure fresh round of funding, which will help it prevent bankruptcy and remain in the eurozone.
Fund infusion by FPIs will rise once issues related to Greece are sorted and the US Federal Reserve's position on interest rates gets clearer, say analysts. With the latest inflow, money invested by FPIs in the capital markets has reached Rs 82,500 crore since the beginning of the year.