look news india
After being net sellers in the last two months, foreign institutional investors (FIIs) have now taken a U-turn in their stance as all concerns about governance in India are over. In June, FIIs bought shares worth about Rs 26,565 crore.
It is believed that the good GDP growth outlook and the rising income of Indian industry have changed the attitude of FIIs. Now all eyes are on the budget. After which the attitude of FIIs will become more clear. India's inclusion in the JP Morgan Bond Index is also a positive factor. Because, with these measures, loans will be available to the government at lower rates and the requirement of capital for Indian industries will also be reduced.
Data for the month of June showed that in the first fortnight of the month, FIIs bought shares of real estate, telecom and financial services. While there was selling in shares of IT, oil and gas sector.
In the results of the recently declared Lok Sabha elections, a coalition government has been formed at the Center after the BJP failed to form an independent government. There were various speculations among the market players about this. The entire political scenario affected the stance of FIIs. However, now after getting indications of a stable government at the Center, FIIs have changed their strategy. The Indian stock market is once again making new records on the back of continuous buying by domestic institutional investors (DIIs) and strong buying trend of retail investors. As a result, foreign institutional investors have also been attracted. Experts believe that the sell-off will be the result of the wrong strategy as FIIs now feel that the Indian stock market is the best source of attractive returns.