Foreign investors pour Rs 21,715 crore into Indian stocks in 10 days
Inflows of $2.29 billion come as global brokerage Nomura suggests a potential end to a record-breaking selling spree.
Foreign portfolio investors (FPIs) have invested $2.29 billion, or Rs 21,715 crore, into Indian equities over the last 10 days, according to The Economic Times. The inflows occur as domestic growth strengthens and corporate earnings exceed expectations.
Global brokerage Nomura believes foreign institutional investors (FIIs) may be nearing the end of a record-breaking selling period. The firm noted that outflows are moderating alongside stronger-than-expected corporate earnings and valuations that have slipped below post-pandemic averages.
Of the 134 companies in Nomura's BSE 200+ universe that reported results, normalised profit after tax (PAT) grew 34 per cent year-on-year. This figure beat consensus estimates by 18 per cent. Excluding oil and gas companies, profit growth was 29 per cent, which was 5 per cent above expectations.
The Securities and Exchange Board of India (Sebi) has recommended removing long-term capital gains (LTCG) tax for foreign investors, Reuters reported on Monday. The final decision rests with the government before the February Budget.
JM Financial estimates that scrapping the LTCG tax for foreign investors could add $3-5 billion to FY28 inflows in a bull-case scenario. The brokerage described the proposed tax relief as a second-order lever, noting that valuations and crude oil prices remain important factors for foreign investor allocations.