New Delhi, June 14 (IANS) Foreign portfolio investors (FPIs) brought in Rs 3,346.94 crore into the Indian stock markets this week, as investor confidence received a strong boost following the Reserve Bank of India’s (RBI) rate cut.
According to data from the National Securities Depository Limited (NSDL), FPIs were active buyers in the Indian equity market during the first three trading sessions of the week — from June 9 to June 13.
The positive mood in the market was largely driven by the RBI’s decision to reduce the repo rate by 50 basis points to 5.5 percent, a move that many saw as a clear signal to support economic growth and improve market liquidity.
Market experts believe that this surprise rate cut has played a big role in attracting foreign investments, as it reflects a pro-growth approach from the central bank.
The Monetary Policy Committee’s (MPC) decision on June 6 has been welcomed by investors, who see it as a timely step to strengthen the economy and improve corporate earnings.
Even though global factors continue to affect market movements, India remains an attractive destination for foreign investment due to its strong fundamentals, policy support, and growing economy.
In May, foreign investors put Rs 19,860 crore into the Indian stock market, making it the best month of the year so far for foreign investment.
Meanwhile, according to analysts, Indian equity markets saw increased volatility this week and ended in the red.
While the week began on a positive note due to progress in US–China trade talks, that optimism faded quickly after Israel launched a strike on Iran’s nuclear facilities.
The incident triggered a wave of caution among global investors, pushing them toward safer assets like gold and US bonds.
Oil prices also jumped above $76 per barrel, breaking months of stability, as fresh concerns over supply disruptions emerged.
–IANS
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