“This is behind the total FII of sales of Rs.1,21,210 crore in 2024. The simplest agreement for this major sale is India’s relatively high valuation compared to other markets. VK Vijay Kumar said.
Vijay Kumar noted that FIIs were not completely removed from India. “Despite heavy sales in the secondary market, the FII has purchased an equity of Rs 40,305 crore through the primary market, where IPO valuation is considered justified. Tariff policy and exchange rates are also affecting FII behavior, and these factors are likely to remain unstable in the near term.”
On the 29th August Gust alone, foreign institutional investors (FIIs) paid Rs. 8,312.66 crore out.
Financial, it leads the regional flow in the H1 August Gust
Sales were focused on financial services, with a withdrawal of Rs 13,471 crore in the first part of the August Gust. It costs Rs. It was followed with Rs 6,380 crore, while oil, gas and consumer fuel lose Rs 4,091 crore in the first 15 days. Power and healthcare also exit significantly, which was Rs. 2,358 crore and Rs. 2,095 crore. Realty, FMCG and consumer durable everyone will get Rs. 1000 crores faced.
Living events
US President Donald Trump made Rs 20,976 crore in the first two weeks of the month, extending his backlash from July after stunning the markets with a 50% tariff announcement. Weak earnings on the domestic front will further combine the pressure with front pressure.
India Slip in EM rankings
Nomura reported that “the weight of EM Funds is July (vs 60% before), which makes India the largest weight market for EM investors holding,” with allocation in China, Hong Kong and Korea.
Bofa Securities noted that India has fallen on the “bottom of emerging market choices” citing Trump’s tariff shock, while North Asian markets contradict India’s challenges that are benefiting from AI cycles and structural reforms.
GDP adds surprise elasticity
Bofa Securities said that in the June quarter, the Indian economy surprised the sidewalk, in which GDP growth was 8.8% annually, which was above the consensus estimate of more than .4..4% recorded in the previous quarter. Gross value added (GVA) growth was 7.6%, supported by strong performance in production and financial services.
Bofa added that despite the global risks of tariffs and trade disruptions, he maintained his financial year 26 GDP forecast, the strong print “rejected everyone without reducing the rate in October.”
Outlook: Improvement as a catalyst?
Jefferies said on the 13 August Gust that with the allocation on “Decdal Laws”, “FPI positioning is close to the lower.” Pay FirM noted that strong domestic flow offers “protection and sentiment booster”, though he warned that no rebound “could not be sustained long.”
Motilal Oswal pointed to the GST rationalization of Prime Minister Modi’s Independence Day, S&P rating upgrade and potential tariff relief “revive the spirit in the Indian equity market”.
Amk Global is known as “Growth-Accrevent, Big-Ticket Reform”, which can offset “near-term concerns on poor growth and vague earnings”, and can potentially serve as a resurrection to attract FIIs to improve the market confidence.
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