After pulling out funds in June, FPIs net inflow at Rs 18 bn in July so far

Foreign investors have put in over Rs 18 billion in the Indian equity markets so far in July after pulling out massive funds in the preceding month.

The latest inflow comes after such investors had taken out more than Rs 200 billion from the stock market during April-June.

According to the latest depository data, foreign portfolio investors (FPIs) pumped in a net sum of Rs 18.48 billion in equities during July 2-27. However, they withdrew Rs 4.82 billion from the debt market during the period under review.

"It would be too early to celebrate given the factors that influence FPI flows do not look promising. Also, the recent buying by FPIs could be a part of their short term tactical play as the quantum of net flows so far does not display conviction," said Himanshu Srivastava, senior research analyst, manager research at Morningstar. The concerns continue to persist over crude oil prices, high retail inflation, depreciating rupee against the US dollar and fear of global trade war, he added.

"The money, which is coming to the market is now from savings or those foreign investors who wish to or have entered the market for the first time," said Tushar Goyal, business development officer at Meri Punji IMF Ltd.

Overall, so far this year, FPIs have pulled out nearly Rs 46 billion in equities, while they withdrew close to Rs 420 billion from the debt markets.