Shedding election jitters, foreign investors turn big bulls ahead of Budget
MUMBAI : Foreign investors in India’s equity markets have shed their pre-election jitters and remain on a bullish streak ahead of the Union budget, assured of political and economic continuity with Narendra Modi returning as Prime Minister for a third successive term. Nirmala Sitharaman, in her second successive term as India’s finance minister, will present the federal budget for 2024-25 next month. Foreign institutional investors, or FIIs, have turnedbullish ahead of the budget not just in the cash segment of Indian equities but also on the derivatives segment.
The Lok Sabha election results earlier this month returned the National Democratic Alliance to power at the Centre, although Modi’s Bharatiya Janata Party fell short of an absolute majority in Parliament. Early jitters over the economics of coalition politics, however, dissipated as Modi took office on 9 June. In June, foreign investors turned net buyers of stocks worth ₹18,807 crore, after net selling ₹34,257 crore in the preceding two months.
They have also begun theJuly series of derivatives with a net cumulative bullish index futures position—of 319,115 contracts on index futures such as the Nifty and the Bank Nifty on Thursday, at the June expiry series of derivatives contracts. Also read |Foreign investors slash bearish bets ahead of Union budget, set stage for rally FIIs had started the June series with a net bearish position of 297,798 contracts on index futures. These have been covered fully and fresh bullish bets have been created.
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