FPIs sold equities worth ₹8749 crore this week, however sharp turnaround seen after RBI rate cut
Mumbai (Maharashtra) [India], June 7 (ANI): Foreign Portfolio Investors (FPIs) began the first week of June on a weak note in the Indian stock market, with net investments staying in the negative territory.
According to data released by NSDL, FPIs pulled out a total of ₹ 8,749 crore from Indian equities during the week from June 2 to June 6. This indicates that foreign investors were net sellers in the market during most of the week.
The withdrawal came amid global uncertainties and cautious investor sentiment. However, a sharp turnaround was seen on Friday after the Reserve Bank of India's Monetary Policy Committee (MPC) announced a surprise rate cut of 50 basis points. The repo rate was reduced to 5.5 per cent, which gave a strong push to investor confidence.
Market experts believe that this aggressive rate cut will boost India's economic momentum and improve overall demand conditions. With inflation staying within the RBI's comfort zone and the central bank indicating a pro-growth stance, FPIs are expected to increase their investments in the coming months.
Ajay Bagga Banking and Market expert told ANI "June first week saw roller coaster in terms of FPI flows. The trend is positive as a weak US dollar is inversely correlated to EM flows. With Indian macro showing strength and expectations of the 100 bps rate cuts providing a further boost to economic momentum and aggregate demand, FPIs will rank India as a top investment destination. Valuations are quoted as a constraint but we see the growth potential overriding these concerns eventually".
Although high stock market valuations remain a concern, experts say that India's strong growth prospects may help overcome this challenge.
The net foreign portfolio investment (FPI) inflows in May remained in positive and stood at ₹ 19,860 crore, making May the best-performing month so far this year in terms of foreign investment.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
News18
an hour ago
- News18
Rs 1.2 Lakh Monthly Salary, Still Can't Buy a Home In India? Viral Post Sparks Debate
Akhilesh concluded the post with a powerful remark: 'The market is not broken. It's working exactly as designed—for someone else.' A recent post on social media platform X has reignited concerns over India's growing real estate affordability crisis. A techie named Akhilesh shared a striking anecdote about his friend in Gurugram who earns a hefty Rs 20 lakh per year, yet still finds himself priced out of the housing market. According to the post, Akhilesh's friend takes home around Rs 1.2 lakh per month after taxes and deductions. He lives modestly—no car, no kids, no extravagant lifestyle. Despite this, every residential project he visits in Gurugram starts at a staggering Rs 2.5 crore. These homes boast features like infinity pools, zen gardens, biometric lifts, and imported marble floors, making it clear that developers are targeting luxury buyers, not average professionals. The viral post struck a chord with many, especially young urban professionals. The core argument is simple: even those in the top 5% of India's income bracket can't comfortably buy a home in metro cities without compromising their financial security. Owning a house would mean living paycheck to paycheck, with no room for emergencies or even basic leisure. Akhilesh concluded the post with a powerful remark: 'The market is not broken. It's working exactly as designed—for someone else." The post captures a larger trend—how rapid urbanisation, speculative investments, and a push for ultra-luxury housing are making homeownership increasingly elusive, even for India's high earners. Anarock's Report Reveals Ultra-Luxury House In Demand Anarock's Annual Residential Report 2024 reveals that 59% of new housing projects in Delhi NCR, 18% in Hyderabad, and 12% in MMR were priced above Rs 2.5 crore, showing a rise in demand for premium homes among wealthy buyers and NRIs. NRIs, in particular, are playing a key role in this expansion, actively acquiring premium properties in major Indian metros as part of long-term wealth preservation strategies, noted a recent report by GRI Club. While the majority of new supply is focused on ultra-luxury homes, there is a noticeable shortage of homes in the upper mid-income and premium segments. Since the RERA law came into effect in 2017, there has been a significant increase in trust for developers who follow rules and deliver on time. This has led to a growing preference from NRIs for projects by such developers. About the Author Business Desk Location : New Delhi, India, India First Published: June 08, 2025, 08:20 IST News business Rs 1.2 Lakh Monthly Salary, Still Can't Buy a Home In India? Viral Post Sparks Debate
Mint
an hour ago
- Mint
Bank holidays next week, June 9-15: Banks to be closed for 3 days in THESE cities; Check full list here
Bank holidays this week, June 9-15: Banks will be closed for three days this week in some parts of India, due to Sant Guru Kabir Jayanti and the weekend, according to the bank holiday calendar by the Reserve Bank of India (RBI). Here is a detailed list of bank holidays for next week — Banks in Shimla and Gangtok will be closed on Wednesday, June 11, 2025, to commemorate Sant Guru Kabir Jayanti, the birth anniversary of the renowned mystic poet and saint, Kabir. The festival occurs on the full moon day (Purnima) of the Jyeshtha month in the Hindu calendar, typically aligning with May or June in the Gregorian calendar. It is celebrated to honour the life and teachings of Kabir Das. Banks across the country will be closed on June 14, 2025 since it is the second Saturday of the month. As per the RBI calendar, banks are typically closed on the second and fourth Saturdays of the month. According to the RBI, all the banks in the country are closed on Sunday. Hence, banks will remain shut on Sunday, June 15. Hence, banks will remain closed for three days in Shimla and Gangtok during the upcoming week after including the weekend holidays. Apart from weekends, bank holidays in India differ from state to state and are based on national, regional, and religious observances. Online banking will be accessible across the country during bank holidays, allowing customers to conduct financial transactions conveniently. Requests for fund transfers can be made using NEFT/RTGS transfer forms, demand draft request forms, and chequebook forms. Credit cards, debit cards, and ATM cards can be obtained through card services. Additional services such as account maintenance forms, setting up standing instructions, and applying for a locker are also available.
Time of India
an hour ago
- Time of India
India is the 5th largest economy, so it makes sense: Canada's Mark Carney backs PM Modi's G7 invite despite tensions
Canadian Prime Minister Mark Carney has firmly defended his invitation to Indian Prime Minister Narendra Modi for the upcoming G7 Summit in Kananaskis , Alberta, from 15–17 June. Carney said India's presence is essential for discussions on global priorities such as energy security, critical minerals, and infrastructure partnerships. 'India is the fifth largest economy in the world, effectively the most populous country in the world, central to a number of those supply chains at the heart of a number of those supply chains, so it makes sense,' Carney said in a media interaction on Friday. The G7 Summit will focus on pressing international concerns including artificial intelligence, climate action, digital development, and cooperation with emerging economies. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like War Thunder - Register now for free and play against over 75 Million real Players War Thunder Play Now Undo Strong push from G6 countries to include India Vina Nadjibulla, Vice President of the Asia Pacific Foundation of Canada, added that the decision to include India wasn't solely Canada's. 'In terms of the G7, we are the outlier because the other six members of the G7 are interested in deepening their strategic partnerships with India, deepening their defence technology and economic ties. In fact, every day there is a new announcement about either France or UK or US doing more with India,' she told CBC News Network. Live Events She continued, 'So having India there also matters to everybody else. I think there was a strong push from other G6 to have India at the table. And I think in order for Canada also to be able to show relevance on the world stage, we can't just engage in diplomacy with those whom we like. I mean, this is not… diplomacy is not a gift to our friends. It's not a concession. It's a necessary tool to be able to advance our interests and defend our values, right?' PM Modi confirms participation Prime Minister Modi accepted the invitation, expressing appreciation in a post on X. 'Glad to receive a call from Prime Minister Mark J Carney of Canada. Congratulated him on his recent election victory and thanked him for the invitation to the G7 Summit in Kananaskis later this month. As vibrant democracies bound by deep people-to-people ties, India and Canada will work together with renewed vigour, guided by mutual respect and shared interests. Look forward to our meeting at the Summit.' A strained backdrop: Nijjar's killing and diplomatic rift This invitation comes at a time when India–Canada ties remain deeply strained. Tensions escalated after the June 2023 killing of Hardeep Singh Nijjar , a Canadian citizen and vocal pro-Khalistan activist, outside a gurdwara in Vancouver. Canadian authorities accused Indian agents of involvement, a charge India categorically denied. The result was a diplomatic standoff, with both countries expelling senior envoys in a tit-for-tat move. When asked whether he believed PM Modi was linked to Nijjar's murder, Carney declined to speculate. 'There is a legal process that is literally underway and quite advanced in Canada… It's never appropriate to make comments with respect to those legal processes,' he said. Four Indian nationals have been arrested and charged in connection with the murder, and investigations continue. Sikh organisations oppose Modi's presence The World Sikh Organization has criticised the decision to invite Modi. Its president, Dinesh Singh, told The Guardian, 'This is a betrayal, not just of our community, but core Canadian values.' These reactions underscore a larger discontent among Sikh Canadians who have accused Ottawa of ignoring community concerns in favour of geopolitical strategy. Despite the rift, Carney said there had been some improvement in bilateral cooperation. 'In addition, bilaterally we have now agreed importantly to continued law enforcement to law enforcement dialogue so there's been some progress on that recognises issues of accountability. I extended the invitation to Prime Minister Modi in that context and he has accepted.' Carney also noted that inviting India to such global platforms helps Canada maintain relevance internationally. Other guest nations at G7 2025 India isn't the only non-G7 country invited to this year's summit. Canada has also extended invitations to: South African President Cyril Ramaphosa Australian Prime Minister Anthony Albanese Ukrainian President Volodymyr Zelensky Mexican President Claudia Sheinbaum (pending confirmation) For Carney and his G7 counterparts, engaging with India appears to be a strategic necessity, regardless of domestic backlash. As the summit approaches, New Delhi's role in global supply chains and economic governance seems to outweigh diplomatic discomfort. Whether this G7 appearance eases bilateral tensions or deepens divisions at home remains to be seen. But for now, both sides appear to have chosen pragmatism over grievance.
