Share markets in India are presently trading marginally higher. Sectoral indices are trading on a mixed note with stocks in the IT sector and metal sector witnessing maximum buying interest. FMCG stocks are trading in the red.
The BSE Sensex is trading up 63 points (up 0.2%) and the NSE Nifty is trading up by 21 points (up 0.2%). The BSE Mid Cap index is trading down by 0.1%, while the BSE Small Cap index is trading flat. The rupee is trading at 64.35 to the US$.
As per an article in the Economic Times, foreign investors have pumped in nearly Rs 110 billion in the Indian capital markets during the first two weeks of July.
As per the latest depository data, FPIs invested a net Rs 4.9 billion in equities during July 3-14, and poured Rs 104 billion in the debt markets.
However, despite the above foreign inflows, foreigners seem less enthused about India compared to some other emerging market countries in FY17, as can be seen from the chart below:
FIIs Not Very Bullish at the Moment
As per an article in the Business Standard, FII flows in 2017 have been impressive at US$ 6.3 billion. But it is only 0.32% of the market cap of the Indian stock market.
1% is considered a sign of a full-fledged bull market. FII flows were 1.04% of market cap in 2014 when the markets were on a roll after the NDA came to power.
Things have not been great since then. The lack of big bang reforms was one reason why FIIs have been cautious.
That said, one shall note that the recent rollout of the Goods and Services Tax (GST) can again motivate FIIs to pour money in the Indian financial markets.
Only time will tell how things pan out on this front. Meanwhile, we’ll keep you updated on the latest developments on this front.
Speaking of GST, the Goods and Services Tax became the order of the day at the start of this month. And all these months we have been subjected to a relentless propaganda by the government and the supporters of the GST, on how it will change our world, only for good.
