FPIs continued the strong investment in Indian bourses, with a net inflow of about Rs 44,344 crore in both equity and debt so far this month till July 19. Domestic market analysts pegged that FPIs continued to be buyers and, in fact, became more aggressive buyers in the week ending July 19.
In detail, FPIs invested Rs 30,771 crore in equities and Rs 13,573 crore in debt. Their interest in investment was across sectors like automobiles, capital goods, healthcare, information technology, telecommunications, and oil and gas. Most interestingly, financial services remained an exception and has been the reason for its subdued performance in July, V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said.
The outlook measures that if the trends of a weakening dollar and bond yields continue, FPIs would not change their bullish stance in the Indian market. Any view on tinkering with the long-term capital gains tax policies in the upcoming Union Budget for the year 2024-2025 slated to be announced on July 23 is being watched by market experts and domestic as well as foreign investors.
It was during FY24 that the net inflow of FPIs in equity and debt markets was Rs 2,82,338 crore. "The FPI fraternity is expected to play a major role in making India one of the top three economies of the world," feel analysts..
Fast recovery in capital markets has also been attributed to the positive sentiment of the market and assurances from the stable government on the continuity of economic reforms. Many will now be keenly waiting to watch what the forthcoming budget proposals bring in terms of transformative measures, which may put India at a better competitive position in comparison to any other emerging global markets.
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