FPIs infuse Rs 19,860 cr in equities in May on strong domestic fundamentals, global eco indicators
Foreign investors continue to exhibit confidence in the country's equity market, injecting Rs 19,860 crore in May driven by favourable global economic indicators and strong domestic fundamentals.
Tired of too many ads?
Remove Ads
Tired of too many ads?
Remove Ads
Foreign investors continue to exhibit confidence in the country's equity market, injecting Rs 19,860 crore in May driven by favourable global economic indicators and strong domestic fundamentals.This positive momentum follows a net investment of Rs 4,223 crore in April, data with the depositories showed.Prior to this, foreign portfolio investors (FPIs) had pulled out Rs 3,973 crore in March, Rs 34,574 crore in February, and a substantial Rs 78,027 crore in January.Going forward, FPIs are likely to continue their investment in India. However, at higher levels they might sell since valuations are getting stretched, VK Vijayakumar, Chief Investment Strategist, Geojit Investments, said.According to the data with the depositories, FPIs made a net investment of Rs 19,860 crore in equities in May. The latest flow has helped narrow the outflow to Rs 92,491 crore in 2025 so far.India's equity markets witnessed a sharp resurgence in FPI activity in April. The sustained buying spree that began in mid-April continued in May too, reflecting renewed investor confidence.Himanshu Srivastava, Associate director - Manager Research, Morningstar Investment, said that several factors influenced FPI flows in May. Globally, easing US inflation and expectations of interest rate cut by the Federal Reserve made emerging markets like India more attractive. Domestically, India's strong GDP growth, robust corporate earnings, and policy reforms enhanced investor confidence."Global macros like declining dollar, slowing US and Chinese economies and domestic macros like high GDP growth and declining inflation and interest rates are the factors driving FII inflows into India," Vijayakumar said.In terms of sectors, FPIs have been buyers in autos, components, telecom and financials in the first half of May.Apart from equities, FPIs invested Rs 19,615 crore in debt general limit and Rs 1,899 crore in debt voluntary retention during the period under review. PTI SP ANU
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Fibre2Fashion
24 minutes ago
- Fibre2Fashion
ICE cotton rises on short covering, weaker US dollar, rising crude oil
ICE cotton futures rose on Monday, the first trading day of the week, supported by short covering as speculators shed their bearish tone. A stronger crude oil market and a weaker US dollar also lent support. However, the tight range in US cotton prices suggested continued consolidation in the market. The ICE July 2025 cotton contract settled at 66.13 cents per pound (0.453 kg), up 1.07 cents from the previous day, marking its first triple-digit gain since May 2. The December 2025 contract closed at 68.69 cents, up 107 points, also recording its largest single-day gain since May 2. Other contracts posted gains ranging from 50 to 89 points. ICE cotton futures rose on Monday, driven by short covering, a weaker US dollar, and stronger crude oil prices. The July 2025 contract saw its first triple-digit gain since May 2, indicating market consolidation. International demand improved as the weaker dollar made cotton cheaper. Trade optimism and OPEC+ decisions also influenced sentiment. The weaker US dollar against other major currencies made US cotton more affordable for international buyers, encouraging overseas purchases. Crude oil surged nearly 4 per cent after OPEC+ maintained its July output increase at the same level as the previous two months. Higher crude oil prices make polyester—a man-made fibre alternative to cotton—more expensive to produce. Despite Monday's breakout, cotton prices continued to trade within a tight range for the 13th consecutive session, signalling sustained consolidation. Total trading volume reached 71,718 contracts, the highest since April 23. In comparison, Friday's cleared contracts totalled 39,650, while the previous week's average daily volume was 40,636 contracts. The rally was largely driven by short covering, as speculators exited bearish positions following a strong overnight session and key resistance breakouts. Market analysts noted that Friday's reversal was linked to end-of-month repositioning, which carried over into Monday's session with renewed short-covering momentum. Evidence also pointed to fresh selling at higher levels—likely from producers or merchants locking in sales or fixing July contracts to take advantage of improved prices. In other commodity markets, Chicago wheat and corn posted gains, while soybeans continued to decline, adding mixed sentiment across the broader agricultural futures space. Trade optimism also supported sentiment, with US President Donald Trump and Chinese President Xi Jinping expected to speak soon to address ongoing trade tensions, particularly concerning critical minerals. US Treasury Secretary Scott Bessent confirmed that the upcoming talks would focus on resolving disputes and stabilising the bilateral trade relationship. Meanwhile, Trump announced a tariff hike to 50 per cent on steel and aluminium imports, causing domestic prices for these metals to spike and triggering a sell-off in shares of foreign steelmakers. Presently, ICE cotton for July 2025 is being traded at 65.87 cents per pound (down 0.26 cent), cash cotton at 64.38 cents (up 1.07 cent), the October 2025 contract at 68.10 cents (up 0.01 cent), the December 2025 contract at 68.39 cents (down 0.30 cent), the March 2026 contract at 69.83 cents per pound (down 0.28 cent), and the May 2026 contract at 70.86 cents (down 0.25 cent). A few contracts remained unchanged, with no trading recorded today. Fibre2Fashion News Desk (KUL)
Mint
36 minutes ago
- Mint
Gold price remains volatile amid geopolitical tensions. What should be your portfolio diversification strategy?
Gold rate today: Precious metal saw a marginal downward trend on Tuesday on Donald Trump's tariff tensions with China and the European Union, continued geopolitical instability from the Russia-Ukraine war, and investor caution ahead of the upcoming US Federal Reserve interest rate announcement. On Multi Commodity Exchange (MCX), August gold futures declined by ₹ 308, or 0.31 per cent, to trade at ₹ 97,645 per 10 grams. Gold prices in the international market experienced a slight decline on Tuesday, pulling back from nearly a four-week high. As of 0249 GMT, spot gold slipped 0.3% to $3,369.98 per ounce, after earlier reaching its highest point since May 8. U.S. gold futures remained unchanged at $3,390. In the previous trading session, gold had surged around 2.7%, marking its strongest one-day increase in more than three weeks. Gold as an asset has been a good diversifier in any portfolio for decades, according to market experts. According to brokerage firm Angel One report, Gold demand and supply are inherent factors defining the volatility in the asset. The supply has been consistent around more than 4000 tons every year for more than the past decade. Jewellery contributes more than 50% of the overall demand for gold historically and this trend has been similar for more than a decade. Central banks have been increasing their interest in the yellow metal since the covid-19. Prathamesh Mallya, DVP- Research, Non-Agri Commodities and Currencies, Angel One, believes that the ongoing trend in gold prices will likely continue in 2025, boosting the yellow metal prices for the second half of 2025. Mallya further said that investors should wait for meaningful correction towards Rs.85000/10 gms for accumulation and recommends to allocate atleast 10 per cent of their portfolio allocation towards gold for better diversification. 'Gold prices have had a good run in the past one and half year as can be seen in the chart alongside. However, for investors with a long term perspective, they should accumulate on every dips taking benefit of value average for higher returns,' he said. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
India Gazette
40 minutes ago
- India Gazette
RBI announces reissue of two Govt securities worth Rs 32000 crore, also open to accept extra Rs 2000 cr
Mumbai (Maharashtra) [India], June 3 (ANI): The Reserve Bank of India (RBI) has announced the re-issue of two Government of India dated securities worth a total of Rs 32,000 crore. A 're-issue' means the RBI is selling more of a bond that is already available in the securities market. This move is part of the government's regular borrowing program. The two securities being re-issued are the 6.92 per cent Government Security (GS) maturing on November 18, 2039, and the 6.90 per cent GS maturing on April 15, 2065. Each of these bonds will be issued for Rs 16,000 crore. Additionally, the RBI has kept the option open to accept up to Rs 2,000 crore extra for each security, depending on market demand. According to the RBI's announcement on Monday, the auction will be held on Friday, June 6, 2025. The settlement, when investors make payments and receive the securities, will take place on Monday, June 9, 2025. The sale will be conducted through the RBI's Core Banking Solution system, known as e-Kuber. Both competitive and non-competitive bids can be submitted electronically on the day of the auction. Non-competitive bids will be accepted between 12:30 p.m. and 1:00 p.m., while competitive bids can be submitted between 12:30 p.m. and 1:30 p.m. The auction will follow a multiple price method, meaning successful bidders will receive the securities at the prices they quote. The central bank also stated that primary dealers can bid for underwriting a part of the issue through the Additional Competitive Underwriting (ACU) facility. These bids will be accepted from 10:30 a.m. to 11:00 a.m. on the same day. The securities will be available for 'When Issued' trading from June 3 to June 6, allowing early trading before the official issuance. Retail investors can also participate through the RBI Retail Direct platform. Moreover, 5 per cent of the notified amount is reserved for eligible individuals and institutions under the non-competitive bidding scheme. This auction is part of the RBI's regular debt management process and offers a secure investment opportunity to investors. The Indian economy grew by 6.5 per cent in real terms in the recently concluded financial year 2024-25, Ministry of Statistics and Programme Implementation's official data showed. The official GDP growth data for the January-March (Fourth quarter) also showed that the economy grew 7.4 per cent during the quarter. During the April-June, July-September, and October-December 2024 quarters, the country's economy, in real terms, observed a growth rate of 6.7 per cent, 5.6 per cent, and 6.2 per cent, respectively. (ANI)
