FPIs net buyers for 3rd month; invest Rs 22,872 cr in Nov
Analysts said expectations of a trade deal between the US and China, and more relief measures as well as disinvestment drive by the government among other factors helped keep FPIs stuck on the capital markets.
A net sum of Rs 25,230 crore was flowed into equities by FPIs in November, the data showed. However, they pulled out Rs 2,358.2 crore from the debt segment, translating into a total net investment of Rs 22,871.8 crore by FPIs in November.FPIs had invested a net sum of Rs 16,037.6 crore in October and Rs 6,557.8 crore in September.
Besides, "tax reforms announced in September 2019 will now to be legislated. This takes away ambiguities on implementation of these reforms," said Pranay Bhatia, partner and leader tax and regulatory services at BDO India.The tax reforms and positive approach will go a long way in reducing the overall taxes for businesses, leading to greater liquidity and economic growth, he added.
Also, "the improving rural consumption numbers along with expectations of better results by companies is aiding this inflow. The midcap space has a lot of attractive valuations at the moment," Harsh Jain said.However, going forward, "there is some nervousness surrounding the upcoming GDP numbers. Many don't have high hopes from it. A lower than expected GDP in this quarter might upset some FPIs for a short while," Jain added. SRS MR MR
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