Team Blitz India
NEW DELHI: Foreign Portfolio Investors (FPIs) have adopted a wait and watch stance amidst the ongoing general elections and have infused just Rs 1,156 crore in the first two trading sessions of May.
This came after FPIs dumped equities worth Rs 8,700 crore in April, on concerns over a tweak in India’s tax treaty with Mauritius and a sustained rise in US bond yields. Before that, FPIs made a net investment of Rs 35,098 crore in March and Rs 1,539 crore in February.
“With general elections in full swing in India, foreign investors have adopted a wait and watch approach, until the election results are out,” Himanshu Srivastava, Associate Director – Manager Research, Morningstar Investment Research India, said.“Additionally, a mixed batch of US data has barely shaken the perceptions that the economy remains robust, indicating that the Federal Reserve may push its first interest rate cut to later part of this year,” he added.
