FIIs poured over US$ 1.6 billion into Indian equities within 10 days: NSDL data

Foreign Institutional Investors (FIIs) purchased Indian equities worth over US$ 1.6 billion between August 16 and 27, according to National Securities Depository Limited (NSDL) data. During this period, benchmark indices Sensex and Nifty appreciated by over 1.4%, while the BSE MidCap and SmallCap indices rose by 1.8% and 2.4%, respectively. The increase in FII investments was driven by bulk deals involving companies such as Ambuja Cement, Tata Tech, GMR Airports, Zomato, PNB Housing, and Nykaa, with transactions valued at approximately US$ 2.62 billion (Rs. 22,000 crore). Contributing factors included speculation about a potential US Federal Reserve interest rate cut, stabilization of the Indian rupee, and positive sentiment regarding India’s growth prospects. Analysts anticipate this trend will continue due to India's strong economic performance and stable macroeconomic indicators.

Conversely, the first half of August (August 1-14) saw the highest FII outflow from India among emerging markets, with equities worth about US$ 2.12 billion sold, leading to declines of over 1% in both Sensex and Nifty and decreases of 1% and 1.3% in the BSE MidCap and SmallCap indices, respectively. FIIs also withdrew US$ 1.14 billion from Japan, US$ 1.6 billion from South Korea, US$ 1.17 billion from Taiwan, and smaller amounts from Thailand and Vietnam, while investing US$ 1.35 billion in Brazil, US$ 899 million in Indonesia, US$ 278 million in Malaysia, and US$ 121 million in the Philippines. Global market volatility, driven by weak US economic data, recession fears, and uncertainties about Federal Reserve interest rate cuts, is expected to lead FIIs to focus on sectors with strong growth potential and companies with solid fundamentals.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.