Mumbai, 19 April (IANS). Foreign investors have once again focused their focus on Indian equity. According to the latest data of National Securities Depository Limited (NSDL), foreign investors have invested about Rs 8,500 crore in equity this week.
The investment occurred during only three trading sessions, Tuesdays, Wednesdays and Thursdays. The stock markets remained closed on Monday and Friday due to public holidays.
This reflects positive changes after several consecutive months of selling by foreign institutional investors (FIIs) in the equity segment. Their return helped markets strongly at the end of the week.
Both major indices, BSE Sensex and National Stock Exchange’s Nifty 50 concluded with a strong recovery of over 4.5 percent at the end of the week, due to positive signs received from domestic and global factors.
This fast was mainly seen due to optimism on postponing the tariffs of the Trump administration and recent discounts on select products, increasing the hope of reducing the ill effects of global trade.
A major reason behind this new wave of investment is the weakening of the US dollar. As the dollar falls down and the Indian rupee-like currencies are strengthening, it is becoming more attractive for global investors to transfer funds in emerging markets like India to India.
Although the investment of FII has raised the market currently, analysts say the coming weeks will be important.
Experts said, “Investors will closely monitor whether this positive trend continues or global factors once again affect foreign investment in Indian stocks.”
According to market experts, quarterly income results of major companies like Infosys, HDFC Bank and ICICI Bank will be important for investors in the coming week.
Many other big companies including HCL Technologies, Axis Bank, Hindustan Unilever and Maruti Suzuki India are also going to release their financial results.
Meanwhile, the end of the April derivative series can increase the instability in the market. Experts said that on the global front, any developments related to tariffs and their possible impact on international markets would also be closely monitored.
-IANS
SKT/Ekde
