Himanshu Srivastava, Associate Director – Manager Research at Morningstar Investment Research India, highlighted that the upcoming Union Budget is eagerly awaited by foreign investors seeking insights into the government’s economic growth plans.
Data from depositories revealed that foreign portfolio investors (FPIs) made a net inflow of Rs 15,352 crore into equities by July 12.
This follows a substantial inflow of Rs 26,565 crore in June, buoyed by political stability and a sharp market recovery.
Manoj Purohit, Partner and leader – FS Tax, Tax and Regulatory Services at BDO India, attributed the recent FPI inflows to positive sentiments, the government’s commitment to reforms, stable US Federal Reserve rates, and strong domestic demand.
In addition to equities, FPIs invested Rs 8,484 crore in the debt market during the review period, bringing their total debt investments this year to Rs 77,109 crore.
Foreign investors poured Rs 15,352 crore ($2.05 billion) into Indian equities in the first half of July, driven by the government’s ongoing reforms, low US Federal Reserve rates, and robust domestic demand.
Himanshu Srivastava, Associate Director – Manager Research at Morningstar Investment Research India, highlighted that the upcoming Union Budget is eagerly awaited by foreign investors seeking insights into the government’s economic growth plans.
Data from depositories revealed that foreign portfolio investors (FPIs) made a net inflow of Rs 15,352 crore into equities by July 12. This follows a substantial inflow of Rs 26,565 crore in June, buoyed by political stability and a sharp market recovery.
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Earlier, FPIs had withdrawn Rs 25,586 crore in May due to election uncertainties and over Rs 8,700 crore in April amid concerns over changes in India’s tax treaty with Mauritius and rising US bond yields.
Manoj Purohit, Partner and leader – FS Tax, Tax and Regulatory Services at BDO India, attributed the recent FPI inflows to positive sentiments, the government’s commitment to reforms, stable US Federal Reserve rates, and strong domestic demand.
Anticipation of a reform-focused budget has also bolstered investor sentiment, Srivastava noted. Better-than-expected earnings this season have further bolstered investor confidence.
In addition to equities, FPIs invested Rs 8,484 crore in the debt market during the review period, bringing their total debt investments this year to Rs 77,109 crore.
Abhishek Banerjee, smallcase Manager and founder at Lotusdew, emphasized India’s attractiveness for FPIs due to potential high returns in foreign currency, rising stock prices, and falling bond yields. However, he noted that Chinese markets offer cheaper options, posing a dilemma for investors choosing between momentum and value.
(With PTI inputs)
