Foreign investors dump shares worth Rs 3,300 cr in June
Foreign investors have pulled out more than Rs 3,300 crore from Indian stock markets so far this month, mainly on account of better returns from Asian peers, concerns over a slow revival in corporate earnings and continued worries over taxation issues.
However, in debt markets, Foreign Portfolio Investors (FPIs) invested Rs 1,500 crore in the country's during the same period. FPIs made gross purchase of shares to the tune of Rs 78,914 crore during June 1-19, while they sold stocks worth Rs 82,248 crore, taking the total net inflow to Rs 3,334 crore, shows latest data from depositories.
"FPIs have been withdrawing money from the domestic capital markets as they are finding China more attractive than India. Besides, FPIs are worried over a slow revival in corporate earnings. "In addition, FPIs are apprehensive that the government would impose a 20 <g data-gr-id="22">per cent</g> Minimum Alternate Tax (MAT) on profits earned by them," UTI Mutual Fund EVP and Fund Manager V Srivastava said. Anand Shah Chief Investment Officer at BNP Paribas said, "there is nothing to worry about FPIs flight from the Indian stock markets. In medium to long-term, India is an attractive place for investment. FPIs will start investing in our markets when issues of Greece and rate hike by US Federal Reserve sort out."
Data showing acceleration in industrial production growth and easing of food price inflation and expectations that above-average monsoon rain will improve the odds for further monetary policy easing from Reserve Bank are expected to help FPIs to infuse money, experts noted. During January to April, investments by FPIs totalled Rs 94,241 crore, but month-on-month analysis shows the fund flows are witnessing declining trend.
Sebi may finalise e-IPO rules
In a new wave of reforms, markets regulator Sebi is set to herald an e-IPO system to allow investors to bid online in the public offers, while the new-age startups will get a separate platform to raise funds and list their shares with an easier set of regulations. The proposed measures, expected to be announced this week after final clearance from <g data-gr-id="38">board</g> of regulatory body.