June was a strong month for foreign portfolio investors (FPIs) in India, with a total inflow of Rs 47,148 crore. This marked the fourth consecutive month of net buying in domestic stocks for FPIs. The sustained FPI flows can be attributed to improving macroeconomic conditions and a reversal in FPI strategy. In the first half of 2023, FPIs have invested a total of Rs 76,407 crore. However, FPIs may become more cautious in the future due to rich valuations in India.
