Team Blitz India
NEW DELHI: Staging a strong comeback after general election results, foreign investors pumped Rs 12,170 crore in Indian equities so far in June, mainly driven by expectations of continued policy reforms and sustained economic growth.
This came following a net withdrawal of Rs 25,586 crore from equities in May on poll jitters and more than Rs 8,700 crore in April amid concerns over a tweak in India’s tax treaty with Mauritius and a sustained rise in US bond yields.
With the latest investment, the total outflow now stood at Rs 11,194 crore so far in 2024 (till June 21), data with the depositories showed.
Going ahead, Sunil Damania, Chief Investment Officer at MojoPMS, said foreign portfolio investors (FPIs) inflow will remain constrained due to the high valuations currently commanded by the Indian equity market.
FPIs had been waiting on the sidelines for the election results. So far in 2024, barring March (Rs 35,000 crore inflow), they have been pulling out from India.
“Though the general election results were sort of a surprise and resulted in a weaker than expected mandate, markets celebrated that yet again a stable government is formed and government continuity is maintained,”KislayUpadhyay, smallcase Manager and founder of FidelFolio, said.
