Mumbai, June 7 (IANS). The US technology index Nasdaq fell 5 per cent in a single session, giving early signs of the bursting of the AI bubble, but this change may see an improvement in foreign investment inflows into the Indian stock market. This information was given by experts on Sunday.
According to NSDL data, FIIs had sold Rs 32,963 crore in May. The selling continued in June also. Since the beginning of this month, Rs 42,926 crore have been sold, taking the selling figure so far in 2026 to Rs 2,83,662 crore.
Given the importance of foreign investment (FPI) inflows to bridge the current account deficit and balance of payments gap, the central bank and the government have taken several steps to attract FPIs.
Dr. V.K., Chief Investment Strategist, Geojit Investments Limited. Vijayakumar said, “In monetary policy, along with measures taken by the Center such as tax exemption on interest and capital gains on FPI investments in government securities, the RBI’s decision to bear the hedging cost on FCNR deposits raised by commercial banks, expansion of the forex swap window, increased access to government bonds through the FAR route and increase in the limit for NRIs and OCIs to invest in the Indian stock market have strengthened forex inflows into India. Will do.”
This has also helped in stabilizing the rupee. The rupee had fallen to a low of 96.96 due to global volatility, however, it recovered to 94.94 on June 5.
“If foreign investors are to be brought back to India, the AI trade, which has been the main driver of foreign investment out of India, must change. There are early signs of this happening at the moment,” the analyst said.
The markets closed last week with major indices like Nifty and Sensex falling amid concerns of geopolitical tensions and uncertainty in global trade.
However, analysts said strong domestic economic signals helped limit the decline.
–IANS
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