Foreign investors withdrew Rs 10,355 crore from the country's equity markets in the last four trading sessions this month due to sweeping tariffs imposed by the US on most nations, including India. The outflow occurred after a net investment of Rs 30,927 crore in the six trading sessions from March 21 to March 28. This infusion helped reduce the overall outflow for March to Rs 3,973 crore, according to data from the depositories. In February, foreign portfolios (FPIs) pulled out Rs 34,574 crore, while the outflow was higher at Rs 78,027 crore in January. This shift in investor sentiment highlighted the volatility and evolving dynamics in global financial markets. Going forward, market participants will closely track the long-term impact of the proposed tariffs, along with upcoming announcements from the Reserve Bank of India (RBI) regarding its monetary policy stance amid expectations of a potential rate cut, said Manoj Purohit, Partner & Leader, FS Tax, Tax & Regulatory ...
The Reserve Bank of India (RBI) maintained the existing caps of 6 per cent for government securities, 2 per cent for state government securities and 15 per cent for corporate bonds
Foreign investors have infused nearly Rs 31,000 crore in the Indian equity markets in the last six trading sessions of the month primarily due to attractive valuations, appreciation in the rupee and improvement in macroeconomic indicators. The re-emergence of Foreign Portfolio Investors (FPIs) as buyers contributed to a smart recovery of about 6 per cent in benchmark index Nifty, reflecting renewed confidence in the market. This latest infusion has also helped reduce the overall outflow for March to Rs 3,973 crore, according to data from the depositories. In comparison to previous months, this marks a significant improvement, as FPIs had pulled out Rs 34,574 crore in February and Rs 78,027 crore in January. Going forward, the trend in FPI flows will depend mainly on the Trump's reciprocal tariffs expected on April 2. If the tariffs are not severe, the rally may continue, VK Vijayakumar, Chief Investment Strategist, Geojit Investments, said. According to the data, FPIs have pulled
The current wave of FPI selling began in October after China's stimulus measures propelled its markets, which were trading at much cheaper valuations than India
Unshackling animal spirits: A record Rs 1.1 trillion in foreign flows via IPOs, QIPs, and rights issues
From peak of Rs 22K crore, the downward slope begins
To boost operational efficiency and respond to concerns raised by Foreign Portfolio Investors (FPIs), Sebi on Wednesday said it has introduced measures to speed up the availability of sale proceeds for such investors, bringing them on par with domestic institutional investors. It is broadly estimated that efficiency gains on account of this measure would be around Rs 2,000 crore per annum. FPIs previously reported delays in their access to sale proceeds beyond the standard 'T+1' (trading plus one) settlement date. These delays were primarily due to the erstwhile process adopted for obtaining tax clearance on their net sale proceeds, to ensure compliance with FEMA Regulations. To address this issue, Sebi engaged in consultations with key stakeholders, including FPIs, clearing corporations, custodians, and tax consultants. This collaborative effort led to significant process improvements, making sale proceeds available to FPIs on settlement day, and bringing them on par with domestic
Higher FPI investment room opens door for $1.8 bn passive inflows
Patra says exclusion of new 14/30-yr G-sec from FAR to boost 5/10-yr bond demand
Foreign investors injected over Rs 33,600 crore into Indian equities so far this month on the expectation of continued policy reforms, sustained economic growth and a better-than-expected earnings season. However, they pulled out over Rs 7,200 crore from equities in the last three trading sessions (July 24-26) after the government hiked taxes on Futures and Options trades (F&O) and capital gains from equity investments in the Budget. Market experts believe that Indian equity is well-positioned for the year to attract foreign investments. However, there may be some monthly volatility due to short-term news. "Indian equity market and bond market are favourably placed for the year. This should attract foreign flows into the country. There could be some volatility in the flows on a month-on-month basis due to short-term news flows," Nimesh Chandan, CIO of Bajaj Finserv AMC, said. According to the data with the depositories, foreign portfolio investors (FPIs) have made a net inflow of .
Lok Sabha elections exit polls: Ten years of the Narendra Modi government have set expectations and given a framework for investors
On the other hand, if BJP fails to win the elections, Nomura expects outflows from the forex channel to be over $30 billion in a couple of weeks.
Foreign investors have pulled out a massive Rs 28,200 crore from Indian equities so far this month, owing to uncertainties about the outcome of the general elections and attractive valuations of Chinese markets. The withdrawal was way higher than a net pullout of over 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. Going forward, there is likely to be a dramatic change in foreign portfolio investors' (FPIs) equity flows in response to election results. Political stability will attract huge inflows in the Indian market, VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said. Following the Lok Sabha elections, FPI inflows into India could strengthen due to three key factors -- potential easing of interest rates by the US Federal Reserve, positive resolutions in global geopolitical tensi
Foreign investors pulled out a massive Rs 17,000 crore from Indian equities in the first 10 days of the month owing to general election and the uncertainty surrounding its outcome coupled with expensive valuations and profit booking. This was way higher than a net withdrawal of Rs 8,700 crore in the entire 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. Looking ahead, post-general elections, corporate India's strong financial performance in Q4 FY24 is anticipated to be rewarded. While FPIs may adopt a cautious stance until the election results are clear, favourable outcomes and established political stability could see their return in significant numbers, Trivesh D, COO at Tradejini, said. According to the data with the depositories, Foreign Portfolio Investors (FPIs) experienced a net outflow of Rs 17,083 crore in equities
Apart from the bond yields and geopolitical crisis, another trigger for FPI selling was the tweak in India's tax treaty with Mauritius, which would now impose higher scrutiny on investments
The Nifty 50 and BSE Sensex rose about 1.6% each last month, as data showing sustained strength in Asia's third-largest economy drove domestic and foreign buying
Foreign inflows of Rs 47,105 crore into debt in CY23 at 6-year high
Ample room for FPI investment, fundamental headwinds drive premiums down
The value of foreign portfolio investors' holdings in the domestic equities reached USD 626 billion in the three months ended June 2023, which was 20 per cent higher from the year-ago period, according to a Morningstar report. This could be attributed to good performance in the domestic equity markets as well as strong net inflows from foreign portfolio investors (FPIs). According to the report, the value of FPIs' investments in Indian equities rose from USD 523 billion as of June 2022 to USD 626 billion at the end of June 2023. On a quarter-on-quarter basis, the value of such investment rose 15 per cent from USD 542 billion recorded in the three months ended March this year. This has helped in pushing FPIs' contribution to Indian equity market capitalisation marginally to 17.33 per cent for the quarter under review from 17.27 per cent for the March quarter. After pulling out funds to the tune of USD 3.2 billion from the Indian equities in the March quarter, FPIs took a sharp U-tu
In the past three trading days, Adani Energy Solutions and Adani Power have rallied more than 12 per cent after promoter and foreign portfolio investors (FPI) bought stake via open market