Mumbai: Foreign portfolio investment activity is turning positive after a lull in most of June, as the Union Budget day approaches.
On Monday, foreign portfolio investors (FPIs) made the biggest purchases of June, with net buying worth Rs 2,419.91 crore, as per national depository NSDL. On Tuesday also FPIs were net buyers, by Rs 106.26 crore.
The FPIs are likely to get active over the next few sessions as the Union Budget nears and would like to position themselves well for the announcements to be made by the finance minister Nirmala Sitharaman. In June so far FPIs are net buyers in equity by Rs 2,350 crore only and have mostly remained on the sidelines.
Earlier this year, just before the interim Budget on February 1, FPIs turned net buyers three days before the big event after month-long selling in January.
A day before the interim Budget, FPIs bought shares worth Rs 2,755.63 crore on January 31, and had made smaller purchases of Rs 276.32 crore and Rs 233.63 in the previous two sessions. Even on Budget day they made purchases worth Rs 1,206.67 crore.
FPIs have been net buyers of Indian equities worth Rs 78,402 crore this year so far, but in June so far their buying has been the lowest.
On the other hand debt market has seen a pick-up in FPI buying in June so far, with purchases worth Rs 9,112 crore, which is the second highest in a month after Rs 12,002 crore in March 2019.
