New Delhi: Foreign investors have pumped in over Rs 13,300 crore into Indian equities in the first two weeks of the month on the back of a resilient domestic economy with promising growth prospects.
Going forward, concerns over changes in the India-Mauritius tax treaty will impact foreign portfolio investor (FPI) flows in the near term, unless there is clarity on the details of the new treaty, said VK Vijayakumar, chief investment strategist at Geojit Financial Services. Caste.
Another major concern is the heightened geopolitical situation in the Middle East due to rising tensions between Iran and Israel. He said that due to this the markets will remain in trouble in the near future.
Since domestic institutional investors (DIIs) are sitting on huge liquidity and retail in India and HNIs are highly optimistic about the Indian market, FP sales will be largely absorbed by domestic funds.According to depository data, FPIs made a net investment of Rs 13,347 crore in Indian equities this month (till April 12).
However, on Friday, FPIs sold Rs 8,027 crore due to fears of changes in the India-Mauritius tax treaty.
Himanshu Srivastava, associate director, manager research, Morningstar Investment Research India, said several factors may have helped the heavy inflows, including Fitch's downgrade of China's sovereign credit rating outlook from stable to negative due to growth concerns. Is.
Moreover, inflation pressures could be eased by expectations of a normal monsoon season this year, and a resilient domestic economy with promising growth prospects has also largely helped inflows, he said.
Apart from equity, FPIs have made a net investment of Rs 1,522 crore in the debt market during the period under review.FPIs have been pouring money into the debt markets for the past few months due to the inclusion of Indian government bonds in the JP Morgan index.
They invested Rs 13,602 crore in March, Rs 22,419 crore in February and Rs 19,836 crore in January.
JPMorgan Chase & Co had announced in September last year that it would add Indian government bonds to its benchmark emerging markets index from June 2024.
This historic inclusion is expected to benefit India by attracting approximately US$20-40 billion over the next 18 to 24 months.
Overall, total inflows into the equity market so far this year have been Rs 24,241 crore and Rs 57,380 crore in the debt market.
Going forward, concerns over changes in the India-Mauritius tax treaty will impact foreign portfolio investor (FPI) flows in the near term, unless there is clarity on the details of the new treaty, said VK Vijayakumar, chief investment strategist at Geojit Financial Services. Caste.
Another major concern is the heightened geopolitical situation in the Middle East due to rising tensions between Iran and Israel. He said that due to this the markets will remain in trouble in the near future.
Since domestic institutional investors (DIIs) are sitting on huge liquidity and retail in India and HNIs are highly optimistic about the Indian market, FP sales will be largely absorbed by domestic funds.According to depository data, FPIs made a net investment of Rs 13,347 crore in Indian equities this month (till April 12).
However, on Friday, FPIs sold Rs 8,027 crore due to fears of changes in the India-Mauritius tax treaty.
Himanshu Srivastava, associate director, manager research, Morningstar Investment Research India, said several factors may have helped the heavy inflows, including Fitch's downgrade of China's sovereign credit rating outlook from stable to negative due to growth concerns. Is.
Moreover, inflation pressures could be eased by expectations of a normal monsoon season this year, and a resilient domestic economy with promising growth prospects has also largely helped inflows, he said.
Apart from equity, FPIs have made a net investment of Rs 1,522 crore in the debt market during the period under review.FPIs have been pouring money into the debt markets for the past few months due to the inclusion of Indian government bonds in the JP Morgan index.
They invested Rs 13,602 crore in March, Rs 22,419 crore in February and Rs 19,836 crore in January.
JPMorgan Chase & Co had announced in September last year that it would add Indian government bonds to its benchmark emerging markets index from June 2024.
This historic inclusion is expected to benefit India by attracting approximately US$20-40 billion over the next 18 to 24 months.
Overall, total inflows into the equity market so far this year have been Rs 24,241 crore and Rs 57,380 crore in the debt market.
