FPIs changed the trend of three months, leaving a lot of selling in the Indian market and buying.
Foreign portfolio investors (FPIs) turned three-month sell-off positions by investing a net Rs 3,117 crore in the Indian markets so far this month (January).
Data from depositories shows that foreign portfolio investors invested Rs 1,857 crore in equities and Rs 1,743 crore in hybrid instruments from January 1 to January 14.
FPIs pulled out Rs 482 crore from the debt segment, taking the total net inflow to Rs 3,117 crore.
Earlier, foreign investors were net selling in the Indian markets for three consecutive months from October 2021.
VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “IT stocks have risen in January after good results from IT companies. The same may be repeated in financial matters.”
According to Himanshu Srivastava, Associate Director and Manager Research, Morningstar India, FPIs have currently taken a cautious approach towards Indian equities.
For the debt segment, Srivastava said that FPIs have not been making significant investments in the Indian debt markets for a long time and the trend is continuing.
FPIs changed the trend of three months: The Union Budget is approaching.
FPIs would like to get more clarity and direction from the government about their roadmap towards economic growth before making substantial investments in the capital markets of the country.
Kotak Securities Head Equity Research (Retail) Shrikant Chauhan said that as far as the Indian market is concerned, the upcoming Union Budget and earnings season will be key things to watch.
Let us tell you that the budget session of Parliament is starting from January 31 and like every year, on February 1 this year also the Union Budget will be presented by the Finance Minister.
The market has high expectations from this budget.
Cryptocurrency investors may get a setback in Budget 2022!
Arvind Srivatsan, Tax Leader, Nangia Andersen LLP has said that the government may consider levying TDS/TCS on sale and purchase of cryptocurrencies above a certain limit in the upcoming budget.
Simultaneously, he said that such transactions should be brought under the purview of specified transactions for the purpose of reporting them to the Income Tax authorities.
Not only this, he said that the proceeds from the sale of cryptocurrencies should be levied at a higher tax rate of 30 percent, similar to winnings from lotteries, game shows, puzzles, etc.