Foreign investors retain their bullish outlook on India
S. V. Krishnamachari
Foreign Portfolio Investors (FPIs) have stepped up their investments in Indian equity markets since May, indicating their optimism on the Indian economy and stock markets.
Data culled from depositories show that FPIs invested Rs 43,804 crore in Indian equities this month (till July 21), after having poured in Rs 47,148 crore in June and Rs 43,838 crore in May.
Meanwhile, benchmark indices turned red on Monday, reversing gains in the previous days, mainly due to Q1 results declared by Reliance Industries Ltd (RIL) and ahead of US central bank’s (Fed) policy on Wednesday.
The BSE Sensex ended at 66,384.78, down 0.45% while the NSE Nifty closed 0.37% lower at 19,672.35.
“Bears continue to dominate as RIL falls. Investors remain cautious ahead of Fed policy outcome on July 26th. Pharma gains, FMCG loses with ITC down 4.30%. Nifty shows desired consolidation with support at 19501, faces hurdles at 20000. The Fed’s decision is crucial in this volatile market,” Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd said in a note on Monday.
Another analyst at brokerage HDFC Securities attributed the fall to global concerns, forcing investors to turn cautious. “ Nifty fell for the second consecutive session on July 24 dragged down by profit taking post results from some companies. At close, Nifty was down 0.37% or 72.7 points at 19672.4. Volumes on the NSE continued to be healthy. Midcap index ended in the positive even as the advance decline ratio was steady at 0.93:1.
Global markets were mixed as investors braced for the busiest week of the earnings season and key central bank policy meetings. A sharp decline in manufacturing and services gauges from the Euro region fanned concerns about the faltering global economy,” Deepak Jasnani, head of retail research at the brokerage said.
The Indian rupee closed at 81.81, its lowest since May 8, according to Anindya Banerjee, VP – Currency Derivatives & Interest Rate Derivatives at Kotak Securities Ltd.