Foreign portfolio investors (FPIs) remained net buyers in the Indian equity markets this week, making  net investment of Rs.5,260 crore in the week from July 7 to July 11, according to data from the National Securities Depository Limited. The data disclosed that it’s reflecting strong positive sentiment towards Indian markets, with the highest single day investment of Rs.2,771 crore recorded.

With this week's inflows, the total net investment by foreign investors in the equity segment for July has risen to Rs.3,839 crore, marking a rebound from the previous week that had observed selling activity by FPIs.

Siddhartha Khemka, Head of Research at Wealth Management, MotilalOswal Financial Servicessays“FII activity is expected to remain subdued in the upcoming week as the market may see increased volatility due to ongoing uncertainty around US trade negotiations.”

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"President Donald Trump's plan to impose blanket tariffs of 15 per cent or 20 per cent on most trade partners adds to the cautiousness," Siddhartha says.

”Investors will be closely watching key domestic macroeconomic indicators, including Consumer Price Index (CPI) and Wholesale Price Index (WPI) inflation data. Additionally, market participants will monitor the first quarter earnings and any updates related to the India-US trade deal,” adds Siddhartha.

 

Aimed global uncertainties, India continuepreferred designation foreign investments owing to a combination of supportive domestic policies and strong macroeconomic fundamentals. In the previous month of June, FPIs had made a net investment of Rs.14,590 crore in the Indian equity segment.

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In May, foreign investors poured in Rs.19,860 crore, making it the best-performing month of the year so far in terms of FPI inflows. However, earlier this year, FPIs had pulled out significant amounts from Indian equities. They sold stocks worth Rs.3,973 crore in March, at the same time January and February, they offloaded equities worth Rs.78,027 crore and Rs.34,574 crore, respectively.