Foreign Portfolio Investors (FPIs) have made a record-high investment of Rs 47,148 crore in Indian equities in June, encouraged by the country’s improving macroeconomic situation. However, FPI inflows may slow in July due to the US Federal Reserve’s recent comments. FPIs are expected to be cautious because valuations in India are considered high in the short term. The sustained FPI flows are attributed to India’s positive domestic indicators, including strong monsoon activity, as well as concerns over China’s economic recovery and uncertainties in the US and UK. FPIs have also invested in sectors such as finance, automobiles, and capital goods.
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