After a period of perilous exodus of foreign investors from the Indian markets in the recent past, sounding alarms, there is sign of ‘normalcy’ that appears to be developing for now.
USD 3 Billion In A Week
As per recent reports, foreign investors brought Indian stocks worth a whopping USD 3 billion or around Rs 25,000 crore.
This surge in demand for Indian shares is the highest since June.
This comes at a time when the Indian economy’s growth has seen a relative slump.
The aforementioned slump was evidenced by the outflow of USD 14 billion of foreign funds from the Indian markets.
Sluggish Growth
The Indian economy grew at the rate of 5.4 per cent in the second quarter of the current fiscal year or FY25. This was the slowest growth rate achieved in nearly two years or seven quarters.
In fact, previously, right before RBI’s announcement on December 6, the investors brought up Indian government bonds worth USD 1.06 billion.
This was under the anticipation that the central bank would bring some relief to the investors.
In the announcement, post the Monetary Policy Committee meeting, although the bank did not reduce the benchmark interest rate or repo rate, the government’s banker, however, did reduce the Cash Reserve Ratio or CRR by 50 basis points to 4 per cent.
Indian Indices In Green
When we look at the overall progress of the marquee indices, the markets are trading in green, as of Tuesday, December 10. Over the past five trading sessions, the BSE Sensex index has made gains, however, the increase is relatively subdued.
Sensex grew by 0.59 per cent or 479.69 points in the past 5 trading sessions. The overall value of the index stood at 81,651.95.
The story was no different at the National Stock Exchange, or NSE, as the benchmark Nifty index also made gains on Tuesday. In the past 5 trading sessions, the index jumped by 0.53 per cent or 130 points. This took the overall value of the index to 24,645.85 points.
