FPIs invest Rs 30,772 cr in equities in July so far
investors injected Rs 30,772 crore into Indian equities so far this month, driven by hopes of continued policy reforms, sustained economic growth and a better-than-expected earnings season. Additionally, the anticipation of a reform-oriented budget has also lifted investor sentiment, Himanshu Srivastava, Associate Director — Manager Research at Morningstar Investment Research India, said.
Going forward, if the recent trend of weakness in dollar and bond yields persists, FPIs are likely to continue their buying in the market, VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said.
Domestic and foreign investors are keenly watching for possible tweaks in the long-term capital gains tax in the Budget to be presented on July 23, he added.
According to the data with the depositories, Foreign Portfolio Investors (FPIs) have made a net inflow of Rs 30,772 crore in equities this month (till July 19).
This came following an inflow of Rs 26,565 crore in equities in the entire June driven by political stability and the 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 yields.
«The formation of the NDA government at the Centre for the third consecutive term has had a positive impact on investor sentiments. It has raised expectations for continued policy reforms and sustained economic growth,» Srivastava said.
Additionally, the
