FIIs To Continue Their Investment In India Amid Robust GDP Growth: Analysts

Mumbai: India’s better-than-expected GDP expansion in This autumn FY25 at 7.4 in step with cent is a hallmark that expansion is rebounding which may end up in revival of company income in FY26, and overseas institutional buyers (FIIs) are prone to proceed their funding in India, analysts mentioned on Saturday. 

The alternate in FII technique in India which started in April continues in May. FIIs had been steady dealers in India within the first 3 months of this yr. The large promoting started in January (Rs 78,027 crore) when the buck index peaked at 111 in mid-January. Thereafter, the depth of marketing declined. FIIs became consumers in April with a purchase determine of Rs 4,243 crore.

“In May up to 30th, FIIs bought equity for Rs 18,082 crore through the exchanges, as per NSDL data. Global macros like declining dollar, slowing US and Chinese economies and domestic macros like high GDP growth and declining inflation and interest rates are the factors driving FII inflows into India,” mentioned Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd.

FIIs had been consumers in vehicles, parts, telecom and financials within the first part of May. According to Ketan Vikam, Head of Sales at Almondz Institutional Equities, any more spike in the USA bond yields, fairness markets may just face downward power as risk-off sentiment may just come into play and force buyers to prune their holdings.

“However, FIIs till now have maintained a bullish stance in Indian equities despite lacklustre trend in the previous week. This offers solace as any optimism in global markets could see the trend continuing in June,” he added.

The RBI’s credit score coverage on rates of interest choice on Friday might be keenly watched as any more reduce in coverage charges would stay markets in excellent stead within the medium time period, mentioned analysts.