Foreign Investors (FPIs) After a long time, once again sellers have become buyers. Actually, foreign investors are again increasing investment in the Indian market. Let us tell you that foreign portfolio investors (FPIs) have made a net investment of Rs 11,730 crore (US $ 1.4 billion) in the Indian stock markets in the week ended June 14. This information has been received from the data of the depository. During the previous week i.e. June 3 to 7, FPIs had withdrawn a net Rs 14,794 crore (US $ 1.77 billion) from the shares. After the latest investment, the net withdrawal of FPIs from shares so far this month has been Rs 3,064 crore.
Confidence increased after the formation of NDA government
VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “After the volatility in the first week of June, stability has returned to the market.” Himanshu Srivastava, Associate Director-Manager Research, Morningstar Investment Research India, said, “This time the government is dependent on the allies, but the National Democratic Alliance (NDA) coming to power for the third consecutive time has raised hopes of continued policy reforms and economic growth.” He said that apart from this, on the global front, lower than expected inflation data in the US has also increased the hope of rate cut this year.
Rs 25,586 crore was withdrawn in May
Earlier in May, FPIs had withdrawn Rs 25,586 crore from shares before the election results. At the same time, they had withdrawn more than Rs 8,700 crore in April due to concerns over changes in India’s tax treaty with Mauritius and the continued rise in bond yields in the US. At the same time, FPIs had made a net investment of Rs 35,098 crore in shares in March and Rs 1,539 crore in February, while in January they had withdrawn Rs 25,743 crore.
This month till June 14, FPIs have invested Rs 5,700 crore in the debt or bond market. Overall, so far this year, FPIs have withdrawn a net Rs 26,428 crore from shares. During this period, they have invested Rs 59,373 crore in the bond market.
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