New Delhi: Overseas investors have infused more than USD 2 billion into the Indian capital markets so far this month on rising hopes of passage of the GST Bill in the Rajya Sabha and expectations of better corporate earnings.
The investment in July is followed by an outflow of Rs 4,373 crore in the preceding two months (May-June). The pullout was mainly due to outflow in debt markets.
According to depositors' data, the net investment of foreign portfolio investors (FPI) stood at Rs 8,086 crore in the stock market during July 1-22 while it was Rs 6,917 crore in the debt market, taking the total inflow to Rs 15,003 crore (USD 2.2 billion).
Experts are hopeful that the Goods and Services Tax (GST) Bill will be passed in the Upper House of Parliament. Further, the monsoon did not disappoint and experts are hoping for better corporate earnings numbers for the quarter, which helped in boosting investor sentiment.
On Wednesday, Minister of State for Finance Arjun Ram Meghwal said the landmark GST Bill is likely to be cleared in the Rajya Sabha as early as next week as the government expects regional parties like TMC and JD(U) to come around and support the legislation.
So far this year, FPIs have invested Rs 27,252 crore in equities while withdrawing Rs 4,651 crore from the debt market. This resulted in a net flow of Rs 22,601 crore.
