Foreign fund inflows in Indian stocks highest after 20 mnths in Aug

Foreign portfolio investors have infused Rs 51,204 crore into the Indian equity segment in the month of August, their highest investments in 20 months, data from the National Securities Depository (NSDL) showed.Meanwhile, FPIs have turned net buyers in Indian equity markets for two consecutive months through August and helped domestic indices to stay buoyant.In July, they were the net buyers with a total purchase of equities worth Rs 4,989 crore, NSDL data showed. September 2021 was the last time when foreign investors were net buyers. So far this month – September, they have already invested Rs 1,963 crore, data from the depository showed.The recent return of foreign investments coupled with global inflation seeming to have plateaued helped Indian equity markets to rally during the past month or so.The recent rise in stock indices helped in recovering the entire losses the investors incurred in 2022. India’s headline retail inflation fell to 6.71 per cent in July from 7.01 per cent in June, the lowest level in five months.In the meantime, retail inflation in the US too somewhat moderated, which improved buying sentiments amongst investors.Coming to FPIs investments in India, till early July, they were selling equities in the Indian markets for nine-to-ten months on a trot due to various macroeconomic reasons.