InvestorQ : How has been the FII buying in the month of August 2022 so far?
Riya Dwivedi made post

How has been the FII buying in the month of August 2022 so far?

shrinidhi Rajan answered.
2 months ago

If the month of July was just a sampler, the month of August has seen a virtual deluge of FPI flows into India. In the month of July 2022, the FPIs had turned net buyers to the tune of $634 million. In comparison, the inflows into Indian equities in the month of August 2022 are not only more decisive but also more affirmative. For instance, in the first two weeks of August 2022, the FPIs infused Rs22,452 crore into Indian stocks. This is largely on the back of the inflation concerns in India and in the world reducing as is evident in recent data flows.

The other aspect has been that central banks like the Fed and the RBI are likely to turn less hawkish, so the worst of the rate risk may be over. That has also enthused the FPIs as they now expect the rupee to also stabilize and gradually gain value. Between October 2021 and June 2022, FPIs sold Rs2.46 trillion or $33 billion worth of equities on rate hike fears. The falling inflation levels have finally turn the sentiments for the better. Dollar index also abated from the 109 levels in late July to 105.26 levels, boosting rate sensitive stocks.