Foreign institutional investors show confidence in Indian market

Foreign Institutional Investors (FPIs) made a big investment of Rs 18589 crore

Relief in lockdown and recovery in stock markets has also started showing effect on foreign investment. In the first week of June, Foreign Institutional Investors (FPIs) made a major investment of Rs 18,589 crore in Indian markets.

Along with this, Mukesh Ambani-controlled Reliance Industries Ltd (RIL) ‘s over Rs 53,000 crore rights issue was over-subscribed and the process of selling 2.8 per cent stake in Kotak Mahindra Bank by promoter Uday Kotak was also evident.

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Foreign investors invested a total of Rs 20,814 crore in equity markets in the first five trading sessions of June. However, in the same period, he withdrew Rs 2,225 crore from the debt segment.

Thus, the total foreign investment in the first week of June stood at Rs 18,589 crore. Prior to this, foreign investors had withdrawn net from the Indian market for three consecutive months. Last month, FPI withdrew Rs 7,366 crore from the Indian market, Rs 15,403 crore in April and a record Rs 1.1 lakh crore in March.

Bajaj Capital Research said that in view of the announcement of the package of Rs 20 lakh crore last month and the beginning of phased relief in lockdown from this month, investors are returning to the stock markets.