InvestorQ : How was the FPI trading in the first week of August 2022?
Moii Chavate made post

How was the FPI trading in the first week of August 2022?

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Tisha Malhotra answered.
2 months ago
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Foreign portfolio investors (FPIs) infused a net sum of Rs14,000 crore into Indian equities in the first week of August 2022. It may be recollected that the FPIs had also infused a sum of $634 million into Indian equities in the month of July. That had come after a full 9 months of persistent FPI selling in equity and during that period, they had offloaded Indian equities to the tune of $35 billion. So July, while it was encouraging, was still too paltry compared to the kind of funds that have flowed out of India.

What has triggered this FPI interest in India. On the one hand, India has shown an uncanny ability to sustain growth even as consumer inflation is trending lower. In a way, the latest RBI policy comes as a whiff of fresh air for the markets as it has kept inflation expectations and growth expectations steady. The bottoming of the rupee around 80/$ levels also helped matters. However, analysts caution that FPIs may want to get more clarity on the current account deficit, which is now expected to burgeon to around 4-5% of GDP in Fy23.

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