Building on their buying momentum, foreign investors poured in nearly Rs 2,300 crore into Indian equity markets in the first week of this month on positive global cues and passage of GST Bill in the Rajya Sabha.
It comes following a four-month high inflow of Rs 12,612 crore in the preceding month. This was the highest net inflow since March, when FPIs had pumped in Rs 21,143 crore in the stock markets. Indian equities have been witnessing positive inflow from foreign investors since March.
Foreign Portfolio Investors (FPIs) turned net buyers of equities in March after pulling out a massive Rs 41,661 crore from the market in previous four months (November-February). Experts have attributed the latest inflow to rate cut by Bank of England (BoE) and passage of Goods and Services Tax (GST) Bill in the Rajya Sabha. BoE has cut its key interest rate by 25 basis points to 0.25 per cent, its first reduction since 2009, and also begun a fresh round of quantitative easing that had been on pause since 2012.
Sentiment got a shot in the arm after the long-stalled indirect tax reform GST Constitution Amendment Bill passed the Rajya Sabha muster on Wednesday and is likely to be tabled in the Lok Sabha on Monday.
There was more good news as Moody's Investors Service yesterday said the GST implementation will be positive for the country's economic growth without any significant impact on inflation. According to depositors' data, the net investment of FPIs stood at Rs 2,290 crore in equities during August 1-5.