New Delhi, 14 June (IANS). Investors’s trust was strengthened after the Reserve Bank of India (RBI) cut interest rates and with this, foreign portfolio investors (FPIs) invested Rs 3,346.94 crore in Indian stock markets this week.
According to data from National Securities Depository Limited (NSDL), FPI was an active buyer in the Indian equity market from 9 June to 13 June, the first three business sessions of the week.
The positive atmosphere in the market was mainly associated with the decision to reduce the repo rate from the RBI to 5.5 percent from 50 basis points to 5.5 percent, which many people saw as a clear indication of supporting economic growth and improving liquidity in the market.
Market experts believe that this amazing deduction in interest rates has played a big role in attracting foreign investment, as it reflects the pro -development approach of the central bank.
The decision of the Monetary Policy Committee (MPC) has been welcomed by investors on 6 June. Investors considered it an important step taken on time to strengthen the economy and improve corporate income.
While global factors continue to affect market activities, on the other hand India remains an attractive destination for foreign investment due to its strong basic things, policy support and growing economy.
Foreign investors invested Rs 19,860 crore in the Indian stock market in May, making it the best month of the year for foreign investment.
Meanwhile, according to market analysts, this week the Indian equity market was seen fluctuating and it ended at the red mark on the last business day.
Although the beginning of the week was positive due to progress in the US-China trade negotiations, this optimism soon ended after Israel’s attack on Iran’s nuclear sites.
The incident created a wave of vigilance among global investors, leading them to safe assets such as gold and American bonds.
Oil prices also rolled above $ 76 per barrel, which broke the stability of months, as new concerns about the supply disruption.
-IANS
SKT/
