New Delhi, July 12 (IANS). The changes made by the government in the tax rules of debt investment are playing an important role in attracting foreign portfolio investors (FPIs). Besides, the stability of the rupee is also helping in bringing back foreign inflows. This information was given by experts.
Experts further said that due to these reasons, foreign investors became buyers in the beginning of July. From July 1 to 10, FPI invested Rs 5,155 crore.
Dr. V.K., Chief Investment Strategist, Geojit Investments Limited. Vijayakumar said, “In addition, there has been investment of Rs 10,001 crore through ‘Primary Market and Others’ category, taking the total investment during this period to Rs 15,156 crore. This is a positive news.”
An important trend in FPI investment in India is the continuous increase in the share of debt.
So far in July, FPIs have invested Rs 3,228 crore through the ‘General Limit’ and Rs 6,619 crore through the ‘Fully Accessible Route’ (FAR).
Experts say that India’s improving macro-economic conditions and stability in the rupee have played an important role in this change in FPI investment.
Investment in India has also increased due to weakness in chip trade and selling by FPIs in markets like South Korea. Market watchers say that unless the geopolitical situation in West Asia does not worsen, this trend is likely to continue.
Last week, due to re-increased geopolitical tensions in West Asia and rise in crude oil prices, the market broke its four-week rising trend and closed with a slight decline.
This week, geopolitical developments had the biggest impact on the market mood.
Recently, tensions between Iran and the US increased again after reports of Iran targeting US military bases in the Gulf countries in response to the US attacks.
“This fresh clash pushed Brent crude prices above $80 per barrel for some time, but by the end of the week they came down to around $76 per barrel, allaying some concerns over imported inflation and external sector risks,” said Ajit Mishra, Research SVP, Religare Broking Ltd.
The performance of different sectors was mixed and there was more movement in certain stocks in the market. On the basis of better sentiment and purchasing of selected shares, realty sector performed the best, followed by IT and metal sectors.
The market is at a crucial juncture in the coming week, where economic data, corporate earnings and geopolitical developments will determine the mood of the market.
–IANS
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