Foreign Investment: The pace of foreign investment in India slowed down, Rs 10,689 crore poured in shares in August
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Foreign investment: On one hand the world is looking at India as a fast growing economy. At the same time, the pace of investment by foreign portfolio investors (FPIs) in the Indian stock markets has slowed down in August. Due to this, during the last three months, FPI had invested heavily in Indian shares. Foreign investors have netted Rs 10,689 crore in stock markets so far this month amid high crude oil prices and inflationary risks. Kotak Securities Ltd. Shrikant Chauhan, head of retail research, said that the stock markets may remain volatile this week due to macroeconomic uncertainty and rising bond yields in the US. With this, foreign investors can withdraw from emerging markets including India and increase investment in US securities.
FPI invested Rs 46,618 crore in Indian stocks in July
VK Vijayakumar, chief investment strategist, Geojit Financial Services, said a weak monsoon in August and its uneven distribution could keep inflation elevated. This situation will affect the market sentiment. According to the depository data, till this month i.e. till August 26, FPIs have invested Rs 10,689 crore in shares. Due to this, in the last three months, the investment of FPI was continuously more than Rs 40,000 crore. In July, FPIs invested Rs 46,618 crore in Indian stocks. His investment in June stood at Rs 47,148 crore. In May, he had infused Rs 43,838 crore in shares. Earlier, their investment was Rs 11,631 crore in April and Rs 7,935 crore in May.
The next FOMC meeting will be held on September 19-20.
Himanshu Srivastava, Associate Director-Manager Research, Morningstore India, said the main reason for the sluggishness in FPI investments this month was that they were waiting for the US Federal Reserve’s event at Jackson Hall, which would give an indication of the upcoming monetary policy stance. . The next meeting of the Federal Open Market Committee (FOMC) is to be held on September 19-20. Apart from stocks, FPIs have also invested Rs 5,950 crore in the debt or bond market during the period under review. This year, FPI investment in Indian stocks has reached Rs 1.37 lakh crore. At the same time, his investment in the debt or bond market has been Rs 26,400 crore.
EFTA seeks reduction in trade barriers on products
On one hand there has been a decrease in foreign investment in India. At the same time, EFTA wants to further simplify trade with India. EFTA, a group of four countries, wants reduction in trade barriers on products like machine tools, advanced chemicals, pharma, chocolate, fish from Norway and Iceland for the proposed Free Trade Agreement (FTA) with India. Helene Budliger Artida, Minister of Economic Affairs of Switzerland has said this. He said that EFTA with India wants an ambitious and comprehensive agreement in areas such as goods, services and intellectual property rights (IPR). India and the European Free Trade Association (EFTA) countries Iceland, Liechtenstein, Norway and Switzerland are negotiating a Trade and Economic Partnership Agreement (TEPA) with an aim to boost economic ties between the two regions.
Talks started in 2008
Negotiations on the agreement officially began in January 2008. Till 2013, there were 13 rounds of talks. Since the resumption of talks in October 2016, several rounds of talks have taken place. Artida said that with regard to trade in goods, India imposes high tariffs on many exports from EFTA countries. We are clearly looking forward to a substantial reduction in trade barriers, especially for high value-added products such as machine tools, advanced chemicals, pharmaceuticals, Swiss chocolate and fish.
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