According to analysts, following the ‘super-rich’ tax announced in the budget 2019-20, Foreign Portfolio Investors (FPIs) pulled out around Rs 7,712 crore from Indian equities, this month.
A net sum of Rs 7,712 crore has been pulled out from equities during July1-19, as per the latest reports available with depositories. Besides, during this period, FPIs pumped in Rs 9,371.12 crore in the debt segment. This has, therefore, turned into a net investment of around Rs 1,659 crore in July so far into the capital markets—both equity and debt.
Besides, other factors which are keeping foreign investors at cove from investing in Indian markets are apathetic earning season, slower pace of GDP growth, sub-par monsoon and lowering of India’s growth forecast from Asian Development Bank.
Read EquityPandit’s Nifty Outlook for the Week