India Due to the general elections in India, foreign investors are adopting a ‘watch and wait’ policy. Foreign portfolio investors (FPIs) have invested Rs 1,156 crore in the Indian stock markets in the first two trading sessions of the current month. Earlier in April, FPIs had sold shares worth Rs 8,700 crore due to concerns over changes in India’s tax treaty with Mauritius and continued rise in bond yields in the US. At the same time, FPI had invested a net amount of Rs 35,098 crore in shares in March and Rs 1,539 crore in February.
₹1,156 crore invested in shares in 2 sessions
According to depository data, FPIs have invested Rs 1,156 crore in shares and withdrawn Rs 1,727 crore from the debt or bond market in the first two trading sessions in May. Himanshu Srivastava, Associate Director – Manager Research, Morningstar Investment Research India, said, “General elections are in full swing in India. Foreign investors have adopted a ‘watch and wait’ attitude till the election results come out.
Signs of slowdown in American economy
VK Vijayakumar, chief investment strategist at Geojit Financial Services, said, “The latest US jobs data indicates a slowdown in the economy. Wage growth is less than four percent, indicating labor market weakness. This is good news from the stock market point of view. This is the reason why there was a strong surge in the American markets on Friday.
Rs 1,727 crore withdrawn from bond market
According to the data, FPIs have withdrawn Rs 1,727 crore from the debt or bond market in the first two trading sessions of May. Earlier, foreign investors had invested Rs 13,602 crore in the bond market in March, Rs 22,419 crore in February and Rs 19,836 crore in January. The investment came on the heels of the announcement of inclusion of Indian government bonds in the JP Morgan index. Overall, FPIs have invested Rs 3,378 crore in shares so far in 2024. His investment in the bond market has been Rs 43,182 crore.
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