Despite substantive outflows, FII investment in India still holds at USD 18.24 bn: SBI Report
F
oreign institutional investors (FIIs) withdrew USD 770.67 million on Thursday, with equity outflows of USD 440.86 million, debt outflows of USD 327.44 million across various categories, and hybrid outflows amounting to USD 2.31 million.
But despite the outflows, total FII inflows for the calendar year 2024 remain at USD 18.241 billion, with fiscal year 2025 seeing inflows of USD 8.924 billion according to an SBI research report.
The report adds that the domestic economy is showing robust growth with the supply chain sector showing strong growth, e-way bill generation--a key indicator of freight movement and economic activity--reached a record 117.25 million in October. This marks a 17 per cent increase year-on-year, reflecting increased business and trade activity across the country.
Mutual funds in India have also shown strong growth, with the share of domestic mutual funds in companies listed on the NSE reaching an all-time high of 9.45 per cent as of September 30, 2024.
This increase from 9.18 per cent in June was driven by a substantial net inflow of Rs89,038 crore during the quarter.
India's vegetable oil imports are forecasted to decline to 15 million metric tons in the 2024-25 season, as favourable weather conditions is likely to boost domestic production.
Palm oil imports are expected to drop from 9.8 million metric tons to 9.2 million, while sunflower oil imports are projected to rise from 2.9 million metric tons to 3.5 million.
Market sentiment was affected by factors such as foreign outflows and results of the recent US election, which saw Donald Trump re-elected, this would strengthen the dollar and weaken emerging markets currencies against the dollar.
The Indian stock market took a significant hit on Thursday with Sensex and Nifty 50 falling over 1 per cent amid widespread selling. Indian benchmark indices wiped out all the gains from the previous trading session.
On Thursday rupee fell to an all-time low of Rs84.38 during the session before ending at Rs84.37, down 0.1 per cent from its Wednesday's close at Rs84.28.
The rupee fell due to hurt by outflows from local equities and on the expectations that Donald Trump's victory in the U.S. presidential election is likely to boost dollars.
✔️ Despite substantive outflows, FII investment in India still holds at USD 18.24 bn: SBI Report
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