close
close

India is becoming a lucrative investment route, check how much foreign investors poured in in July

Posted on by darion

Foreign portfolio investors maintained a bullish view of Indian equities and poured Rs 32,365 crore into the segment in July. During the month, investors also poured Rs 22,363 crore into the Indian debt market, official deposit data revealed.

Analysts noted that the positive sentiment towards the Indian market was attributed to steady economic growth and a better-than-expected earnings season. Expectations of continued policy reforms also helped attract more investors to the Indian market.

However, in the first two trading sessions in August, foreign investors dumped Indian equities worth Rs 1,027 crore. This year, the Indian debt market has seen an overall inflow of Rs 94,628 crore.

Commenting on the market flows, VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, noted, “There has been a mixed trend in FPI flows after the Budget announcement of increasing capital gains tax on equity investments. Going forward, the developments in the US economy and markets will set the trend for FPIs in August.”

Also read: Stock market on the move: Experts await RBI decision on key interest rates, global economic trends, PMI data

Sharing the outlook, Vaibhav Porwal, Co-Founder, Dezerv, said the US Federal Reserve is expected to cut interest rates in September. US employment data came in below expectations and the weakening economy is expected to ensure a rate cut in the future, he noted. “There is strong talk of a rate cut of maybe 50 basis points now,” he added.

Himanshu Srivastava, Associate Director – Manager Research, Morningstar Investment Research India, noted, “The resurgence in FPI investment can be attributed to the steady economic growth, the government’s focus on infrastructure development, a better-than-expected earnings season that has improved India’s corporate balance sheet.” Srivastava added that the increase in expectations regarding India’s GDP projections by the IMF and ADB will help the economy perform better.