FII inflows in first six months of 2019 at highest in five years

FII Inflows in First Six Months of 2019 at Highest in Five Years

This increase in flow was driven by different global factor including shift in stance on monetary policies by various central banks along with positive outcome of US- China trade talks. The US Federal Reserve also paused the rate hike acting as a catalyst for economy.

Foreign institutional investors (FIIs) has been increasing in the initial a half year of 2019 in Indian equities withstanding the instability and vulnerability due to the election. FIIs has seen a total investment of US$ 11.5 billion from January to June 2019, similar to what was seen in 2014.Though this was not same at the beginning where net flow was worth US$ 75.35 million in January. After that started picking pace for following five months. In June itself, FIIs saw net buyers of US$ 231.45 million in equities. 

This increase in flow was driven by different global factor including shift in stance on monetary policies by various central banks along with positive outcome of US- China trade talks. The US Federal Reserve also paused the rate hike acting as a catalyst for economy.

Although the pace has slowed down by last may affected by various factors. The fallout of US- China trade talks has declined liquidity and impacted the cash flow. The slowdown is also because of the Crude oil surges and tension between US and Iran in west.

Investors are hopeful that G20 and upcoming budget will reform and review these economic slowdowns.


Source: IBEF

Image Courtesy: BS