foreign investors Finally, they have returned to the Indian market. Amidst the general elections, foreign investors were rapidly withdrawing their money from the stock market, but once again the formation of the NDA government at the center has strengthened the confidence of investors. Let us tell you that making a strong comeback after the results of the general elections, foreign portfolio investors (FPIs) have invested a net Rs 12,170 crore in the Indian stock market in June so far (till June 21). The FPI’s attraction towards the Indian stock markets has increased in the hope of continuity on the policy front and sustained economic growth.
More than 25 thousand crores were withdrawn in May
Earlier in May, FPIs had made a net withdrawal of Rs 25,586 crore from stocks amid uncertainty over the election results. At the same time, they had withdrawn more than Rs 8,700 crore from stocks in April amid concerns over changes in India’s tax treaty with Mauritius and the continued rise in US bond yields. Depository data shows that after fresh investments, FPI withdrawals from stocks in 2024 (June 21) stood at Rs 11,194 crore.
Investors now have their eyes on the general budget
Sunil Damania, Chief Investment Officer, MojoPMS, said that the flow of foreign portfolio investors will remain affected due to the high valuation of the Indian stock market at present. Kislay Upadhyay, Smallcase Manager and Founder, Fidelfolio, said, “Although the results of the general elections were a surprise, the market is celebrating the formation of a stable government.
Himanshu Srivastava, Associate Director-Manager Research, Morningstar Investment Research India, said that apart from this, the expectation of a budget supporting growth has also strengthened investor sentiment. According to the data, FPIs have invested Rs 10,575 crore in the debt or bond market during the period under review.
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