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
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FPIs withdraw Rs 28,200 crore from Indian equities on election jitters (19-05-2024)
Foreign investors’ trading activity key driver in holiday-shortened week (19-05-2024)
The last batch of quarterly earnings, global trends and trading activity of foreign investors will guide the equity market movement in a holiday-shortened week ahead, analysts said.
Volatility may continue amid investors’ cautious approach in the election season.
Markets will remain closed on Monday due to the fifth phase of the Lok Sabha elections in Mumbai.
“We are at the end of Q4 earnings. Positive earnings reports could provide some relief in this uncertain market,” said Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd.
US Fed Chair Jerome Powell is scheduled to deliver a speech on Monday, which is likely to influence market sentiments, Gour said.
Furthermore, upcoming economic data releases from Japan and the US, along with movements in the global currency market, will also be important factors to consider, he added.
ONGC, SAIL, BHEL, JK Tyre, One97 Communications, Power Grid, InterGlobe Aviation, ITC and NTPC will announce their quarterly earnings this week.
Mcap of 8 of most valued firms climbs Rs 1.47 trn; LIC, RIL major gainers (19-05-2024)
Eight of the top-10 most valued firms added Rs 1,47,935.19 crore in market valuation last week, with Life Insurance Corporation of India (LIC) and Reliance Industries emerging as the biggest gainers.
Last week, the BSE benchmark climbed 1,341.47 points or 1.84 per cent.
The National Stock Exchange (NSE) and BSE conducted a special trading session in the equity and equity derivative segments on May 18 to check their preparedness for handling major disruptions or failures at the primary site.
The valuation of LIC zoomed Rs 40,163.73 crore to Rs 6,16,212.90 crore.
Reliance Industries added Rs 36,467.26 crore, taking its market valuation to Rs 19,41,110.70 crore.
The valuation of Bharti Airtel climbed Rs 26,492.61 crore to Rs 7,64,917.29 crore, and that of HDFC Bank rallied by Rs 21,136.71 crore to Rs 11,14,163.29 crore.
The market capitalisation (mcap) of ICICI Bank soared Rs 9,570.68 crore to Rs 7,94,404.51 crore, and that of Infosys went up by Rs 7,815.51 crore to Rs 5,99,376.39 .
Jindal Capital reports standalone net loss of Rs 0.06 crore in the March 2024 quarter (18-05-2024)
Sales decline 45.87% to Rs 0.59 crore
Krsnaa Diagnostics consolidated net profit declines 1.00% in the March 2024 quarter (18-05-2024)
Sales rise 24.81% to Rs 166.28 crore
Godha Cabcon and Insulation reports standalone net profit of Rs 1.22 crore in the March 2024 quarter (18-05-2024)
Sales rise 356.01% to Rs 16.69 crore
Vibrant Global Capital consolidated net profit declines 67.25% in the March 2024 quarter (18-05-2024)
Sales rise 20.80% to Rs 72.01 crore
Tide Water Oil Co (I) consolidated net profit rises 24.73% in the March 2024 quarter (18-05-2024)
Sales rise 3.60% to Rs 486.82 crore
PPAP Automotive reports consolidated net loss of Rs 8.16 crore in the March 2024 quarter (18-05-2024)
Sales rise 2.59% to Rs 135.70 crore
Trident consolidated net profit declines 56.37% in the March 2024 quarter (18-05-2024)
Sales rise 6.93% to Rs 1682.26 crore