According to data released by nsdl, fipis pulled out a total of 8,749 Crore from Indian Equites during the Week from June 2 to June 6.
The withdrawal came amid global uncertainies and cautious investor sentiments. However, a sharp turning waste on Friday after the reserve bank of India’s Monetary Policy Committee (MPC) Announced a Surprise Rate Cut of 50 Basis points. The repo rate was reduced to 5.5 per cent, which Gave a Strong Push to Investor Confidence.
Market Experts Believe That This Aggressive Rate Cut will Bost India’s Economic Momentum and Improve Overall Demand Conditions. With inflation storying with the RBI’s comfort zone and the central bank indicating a pro-road, fipis are expected to increase their investments in the coming months.
Ajay Bagga Banking and Market Expert Told Ani “June First Week Saw Roller Coaster in Terms of FPI Flows. The trend is positive as a weak us dollar is dollar is dollar is dollars. Showing Strength and Expectations of the 100 BPS Rate Cuts Providing a Further Boost to Economic Momentum and Aggregate Demand, FPIS will rank india as a top investment destination. The growth potential overriding these concerns Eventually “.
Although High Stock Market Valuations remain a concert, experts say
The Net Foreign Portfolio Investment (FPI) Inflows in May Remained in Positive and Stood at 19,860 Crore, Making May the Best-Peerming Month So Far This Year in Terms of Foreign Investment.
In previous months’ data also showed that fipis had sold stocks Worth 3,973 Crore in March. In January and February, they had sold equities worth 78,027 Crore and 34,574 Crore, respectively. (Ani)