FIIs Pumped Over Rs 26,000 Crore into Indian Stocks in June: Budget Expectations Soar

The Indian stock market saw a major influx of foreign investment in June, with Foreign Institutional Investors (FIIs) pouring over Rs 26,000 crore into the market. This impressive figure marks a significant turnaround from the previous month’s net selling, signaling a renewed confidence in the Indian economy.

But what drove this sudden surge?

Several factors are at play, including:

• A weakening dollar: The US dollar has been weakening against major currencies, making Indian assets relatively more attractive to foreign investors.

• Strong Indian economic fundamentals: India’s GDP growth continues to be robust, outpacing many developed economies. The government’s structural reforms and initiatives to boost growth are also contributing to investor confidence.

• Attractive valuations: Indian stocks are currently trading at attractive valuations compared to their global peers, making them a compelling investment proposition.

The focus now shifts to the upcoming Union Budget. Investors will be closely watching the government’s fiscal policy, especially its stance on spending, taxation, and infrastructure development. Any positive measures that bolster economic growth and improve corporate profitability are likely to further enhance investor sentiment.

Here’s a breakdown of the FII investment in June:

• Equity: Rs 25,348 crore

• Debt: Rs 696 crore

The data clearly indicates that FIIs are optimistic about the Indian market’s potential. However, it’s crucial to note that market sentiment can be volatile and subject to global economic events.

While the recent FII influx is encouraging, the upcoming Budget will play a crucial role in shaping the future trajectory of the Indian stock market. Investors and businesses alike are eagerly awaiting the government’s announcements, hoping for policies that will fuel sustainable growth and prosperity.

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