modi government Foreign portfolio investors (FPIs) have invested Rs 30,772 crore in the Indian stock markets so far this month due to the expectation of continued policy reforms by the government, sustained economic growth and better quarterly results of companies. Himanshu Srivastava, Associate Director-Manager (Research), Morningstar Investment Research India, said that apart from this, the expectation of the budget being reform-oriented has strengthened investor sentiment. VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said that if the recent trend of softening of dollar and bond yields continues in the future, then FPIs will continue to buy in the Indian market.
Eye on the budget to be presented on July 23
He said that domestic and foreign investors are keenly watching the possible changes in long-term capital gains tax in the budget to be presented on July 23. According to the depository data, FPIs have invested a net Rs 30,772 crore in shares so far this month (till July 19). Earlier, due to political stability and sharp rise in the markets, they had invested Rs 26,565 crore in shares in June. Earlier, FPIs had withdrawn Rs 25,586 crore from shares in May amid confusion over the election results.
There was a big withdrawal in April
They had withdrawn more than Rs 8,700 crore in April amid concerns over changes in India’s tax treaty with Mauritius and rising US bond yields. Apart from shares, FPIs have invested Rs 13,573 crore in the debt or bond market during the period under review. This has taken their investment in the bond market to Rs 82,197 crore so far this year.
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