After three consecutive days of selling, foreign institutional investors turned net buyers on Friday, purchasing Indian stocks worth Rs 2,546.4 crore, according to provisional data available on NSE.
This influx of capital comes after foreign investors had sold shares worth Rs 10,711.7 crore since the budget day, until July 25. The sell-off on the budget day was triggered after FM Nirmala Sitharaman announced a revision in the Long Term Capital Gains and Short Term Capital Gains Tax and also an slightly upward revision in STT on Futures and Options trades.
Domestic institutional investors continued their buying streak for the fourth straight session, adding shares worth Rs 2,774.31 crore, as per NSE data.
Despite recent selling, foreign institutions have remained net buyers of Indian equities in 2024, investing a total of Rs 36,889 crore, according to data from the National Securities Depository Ltd. However, a clear turn around of foreign money coming back to India is yet to be seen.
The Nifty currently hovering around the 24,800 levels is already at an expensive valuation as compared to its long-term average. Experts believe that the return of FPIs is due but the price paid by them will be definitely higher in terms of valuations.
