With India-Pakistan tensions easing, fourth quarter earnings beating expectations, and foreign investors making a strong comeback, the market mood has clearly shifted.
The inclusion of IGBs in JP Morgan index will increase foreign exposure, leading to the government being more fiscally prudent, and lower the government’s borrowing costs
RBI keeps repo rate unchanged at 6.5 percent in June monetary policy.
Continued policy support and economic stability can attract more flows from foreign investors
The rupee depreciated around 0.7 percent in 2023, due to rate hikes by global central bank and a higher dollar index
This came following a nine-month high investment of Rs 43,838 crore in equities in May, Rs 11,631 crore in April and Rs 7,936 crore in March, data with the depositories showed.
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A concerted effort to stamp out inflation by central banks has raised the risk of a recession. If this risk plays out, FIIs may return to their favourite hunting grounds in India
After six months of selling spree, FPIs turned net investors in the first week of April and invested Rs 7,707 crore in equities.
With positive flows in equity schemes in the past couple of months, mutual funds have turned saviour for equity markets as they are seen absorbing the selling by FPIs
The inflows follow a net investment of Rs 15,862 crore in equity and debt last month. Prior to that, FPIs had pulled out a total of over Rs 80,000 crore from October to January.