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Before the budget, foreigners opened the safe and spent Rs 8,000 crore in India in 5 days.

Sagar Patel

By Sagar Patel

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Foreign investors have invested around Rs 8,000 crore in the first week of July.

There are still two and a half weeks left for the budget to be presented. Even before that, foreign investors have poured money into the stock market. The special thing is that in the first week of July, FPI invested Rs 8,000 crore in the stock market. Whereas about five years ago, when the budget came in July, investors had withdrawn more than Rs 12,000 crore. Whereas the circumstances of the month of July 2014 were completely different. This time the budget will come in the last week of July. Whereas last time the budget was presented in the first week of July. It remains to be seen what kind of response foreign investors will get in the coming days of this budget month.

Positive response for the second consecutive month

According to the data, foreign portfolio investors (FPIs) have invested a net amount of Rs 7,962 crore in equities so far this month (till July 5). Amid strength on the economic front, FPI sentiment in the Indian market has increased. According to the depository data, with this the total FPI investment in equities so far this year has reached Rs 11,163 crore. As of early June, FPI had invested Rs 26,565 crore in equities. Due to confusion over the elections, foreign investors withdrew Rs 25,586 crore from the equity market in May. FPIs had withdrawn over Rs 8,700 crore from equities in April due to concerns over changes in India’s tax treaty with Mauritius and rising bond yields in the US.

How much did you invest in bonds?

During this period, apart from equity, FPIs have also invested Rs 6,304 crore in the debt or bond market. Thus, so far this year, FPIs have invested Rs 74,928 crore in the bond market. According to statistics, this is the third consecutive month when the response of foreign investors in the bond market is very positive. An investment of Rs 8,761 crore was made in May and Rs 14,955 crore was invested in June. In the current year, in the month of April alone, foreign investors had withdrawn Rs 10,949 crore. Otherwise, Rs 19,837 crore was invested in January, Rs 22,419 crore in February and Rs 13,602 crore in the month of March.

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What the experts say

Experts say that going forward, first quarter earnings numbers of companies and the overall budget will decide the direction of FPI inflows. Milind Muchhala, CEO of Julius Baer India, said some funds were probably waiting for the elections to get over. VK Vijayakumar, chief investment strategist at Geojit Financial Services, said the important reason for the FPI inflow into India is external factors… such as rising bond yields in the US and lower valuations in other emerging markets.

Sagar Patel

Sagar Patel

I am Sagar Patel, specializing in business news reporting. With a keen focus on economic trends, market analysis, and corporate developments,

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