This came following an inflow of Rs 26,565 crore in equities in June on the back of political stability and a sharp rebound in markets
New Delhi: Foreign investors infused Rs 15,352 crore into Indian equities during the first half of this month, driven by the government’s commitment to ongoing reforms, low US Federal rates, and strong domestic demand.
The upcoming Union Budget will be one of the most watched events by foreign investors to understand the government’s plans for economic growth, Himanshu Srivastava, Associate Director – Manager Research at Morningstar Investment Research India, said.
According to the data with the depositories, foreign portfolio investors (FPIs) have made a net inflow of Rs 15,352 crore in equities this month (till July 12).
This came following an inflow of Rs 26,565 crore in equities in June on the back of political stability and a sharp rebound in markets.
Before that, FPIs withdrew Rs 25,586 crore in May on poll jitters and over Rs 8,700 crore in April on concerns over a tweak in India’s tax treaty with Mauritius and a sustained rise in US bond yield.
The latest FPIs’ flow can be attributed to the positive sentiments, stable government’s assurance on continuity of reforms, tepid US Fed rates and a strong domestic demand, Manoj Purohit, Partner and leader – FS Tax, Tax and Regulatory Services, BDO India, said.