FIIs confidence puts wind in Nifty’s sails

As one of the emerging markets in Asia, Indian bourses have become lucrative hotspots for foreign investors. Adding to its recent achievements, India also witnessed one of the largest tax reforms – the Goods and Service Tax (GST) – coming into force from July 1. The new tax structure seems to be running on a smooth track so far, as per government sources.
  
On Monday’s intra-day trade, Nifty opened over the 5 digit level and is comfortably trading over it, gaining over 17 points at the 10,032 level. BSE Sensex also climbed higher to touch its intra-day high level of 32,451 and is maintaining the uptrend mood.
 
July witnessed record highs for the broader market indices as well as sectoral market indices. The 30-share BSE barometer rose to an all time record high level of 32,672 on July 27, 2017. The Nifty index soared to set a new record high level of 10,114 on July 25, 2017 and Nifty Bank soared to touch its record high level of 25,032 on July 27, 2017.
 
Overseas investors have infused USD 4 billion into the Indian capital market in July primarily due to “better prospects” of economic growth as compared to other emerging markets.
 
The latest inflow follows net infusion of Rs 1.6 lakh crore in the previous five months (February-June) whereas in the month of January, they had pulled out Rs 3,496 crore.
 
According to the latest depository data, FPIs invested a net Rs 7,611 crore (USD 1.2 billion) in equities during July 3-28, while they poured Rs 18,599 crore (USD 2.9 billion) in the debt markets review, translating into a net inflow of Rs 26,210 crore (USD 4.1 billion).