Rs 32,000 crore-inflow in 12 days! 7 reasons why FIIs are chasing Indian stocks non-stop
Sensex and Nifty to fresh all-time peaks, foreign institutional investors (FIIs) have been buying Indian stocks non-stop with a cumulative inflow of Rs 32,000 crore on Dalal Street in 12 trading sessions.
FIIs can be seen pouring money into India funds at the cost of China, Brazil, Taiwan and South Korea as consensus is gradually building on imminent rate cuts in the second half of 2024. This month's buying comes after FII outflows worth over Rs 34,000 crore in the last 2 months. For 12 consecutive trading sessions from June 7 till June 25, FIIs have been net buyers on Dalal Street, according to Sebi data.
Whether you call it a pre-Budget or a post-election rally, the stock market looks poised to extend the bull run in July when Nifty has shown a strong positive price seasonality with an average return of 3.3% in the last 10 years.
«The view is that the Indian equity markets can deliver much better returns going forward from here on. And that is primarily the reasons why not only FIIs have been buying, but even domestic institutions and retail participation has been on an elevated level. Because of certain short term reasons, like a little bit of deficit of rainfall etc, there could be a correction in the market, which is healthy in terms of fresh buying coming into the market,» Gaurang Shah, Senior Vice President, Geojit Financial Services, told ET Markets.
Also read | FIIs have sold Rs 1 lakh crore worth of stocks from these 5 sectors in H1 of CY24
Here's what's behind the rush for Indian equities:
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