FPIs invest Rs 32,365 cr in equities in July on continued policy reforms
equities in July on the back of expectation of continued policy reforms and sustained economic growth and better-than-expected earnings season. However, they pulled Rs 1,027 crore from equities in the first two trading sessions of this month (August 1-2), data with the depositories showed.
There has been a mixed trend with respect to FPI flows following the budget announcement on increase in capital gains tax on equity investments.
Going forward, developments in the US economy and markets will set the trend for FPI in August, V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said.
«Weaker-than-expected employment data along with slowing economy has made it certain that the US Fed is expected to cut rates in September. The more important question here is the extent of cut. Currently, there is strong commentary getting built for maybe a 50 basis points rate cut in interest rates,» Vaibhav Porwal, Co-founder of Dezerv, said.
According to the data with the depositories, Foreign Portfolio Investors (FPIs) have made a net inflow of Rs 32,365 crore in equities in July. This came following an inflow Rs 26,565 crore in 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 resurgence in FPI investment can be attributed to sustained economic growth, government's focus on
