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Time of India
3 days ago
- Business
- Time of India
High valuations trigger global investor cashout
Representative image NEW DELHI: The surge in repatriation or disinvestment by investors was driven by overseas players seeking to cash in on higher valuations in India. They exited through IPOs, stock market sales, and "private arrangements," with Singtel's share sale in Bharti Airtel, IndiGo co-founder Rakesh Gangwal's sale through block deals in IndiGo parent Interglobe, and Hyundai's dilution through the public issue in its Indian arm being the top contributors. Official data accessed by TOI showed that during the last financial year, 95% of the disinvestment or repatriation was related to these three categories, with two-thirds of all divestments happening through the stock market route. Overall, 58% of the remittances were linked to stock market transactions, while another 28% were on account of private arrangements, including private placements and preferential allotments. As Gangwal sold more shares in Interglobe and BAT announced a fresh sale in ITC, the trend has continued into the current fiscal year as well. The two transactions in as many days between them garnered a little under Rs 25,000 crore (around $2.9 billion). Latest data released by RBI pegged disinvestment of shares in Indian entities during the last financial year at over $51 billion. Along with outward FDI of $29 billion, this resulted in net FDI inflows of just under $400 million, 96% lower than the previous year. In its monthly Bulletin, RBI described it as "a sign of a mature market where foreign investors can enter and exit smoothly, reflecting positively on the Indian economy. " Govt sources, however, said that too much should not be read into the numbers as foreign players, particularly private equity investors, were exiting a part of their investment in domestic companies at a premium. Apart from the Hyundai parent, investors in Swiggy and rival Eternal (formerly Zomato) also decided to book profits on their investments in the two food delivery companies. When it comes to outward FDI, the Mittals of Bharti Group acquired a stake in BT Group in the UK, apart from several other companies seeking to tap into opportunities overseas. "That Indian overseas direct investment increased nearly by $12.5 billion during FY25, even as uncertainty reigned in the world, warrants attention, especially given their cautious attitude towards domestic investment," the finance ministry's monthly economic report said. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
22-05-2025
- Business
- Time of India
Stock market today: Nifty50 below 24,650; BSE Sensex drops over 600 points
Market analysts anticipate continued stability, backed by robust domestic economic indicators. (AI image) Stock market today : Indian equity benchmark indices, Nifty50 and BSE Sensex , opened in red on Thursday. While Nifty50 went below 24,650, BSE Sensex was down over 600 points. At 9:21 AM, Nifty50 was trading at 24,617.15, down 196 points or 0.79%. BSE Sensex was at 80,971.45, down 625 points or 0.77%. Market analysts anticipate continued stability, backed by robust domestic economic indicators, satisfactory corporate performance, and predictions of above-average rainfall this season. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited says, 'There is slight risk off in global markets . This is evident from the strength in alternate assets like gold and Bitcoin. The fundamental issue is the high fiscal deficit of the US which the market feels is unsustainable. The weak US 20-year bond auction and the spike in yields of 5-year, 10-year and 30-year bonds indicate the declining confidence in US bonds. In Japan, too, bond yields are rising.' 'Rising US bond yields are usually negative for emerging markets. But the situation is slightly different now. The root cause of the problem is the unsustainable US fiscal deficit and debt. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Trading CFD dengan Teknologi dan Kecepatan Lebih Baik IC Markets Mendaftar Undo This may trigger some capital flows away from the US to other economies where prospects for growth and earnings are better. An important trend from the market perspective is that companies driven by domestic consumption are doing well. The Q4 results of Interglobe aviation and Bharti Airtel are good examples of this trend. This trend can sustain." US equities ended considerably lower on Wednesday, with Treasury yields rising amid concerns over potential trillion-dollar increases in government debt following President Donald Trump's proposed tax reduction legislation. Asian equities declined and Treasury yields extended their downward trend early Thursday, following US market losses amid concerns over the American deficit situation. Gold prices increased on Thursday as investors sought safety due to growing concerns about US government debt and tepid interest in 20-year Treasury bonds, indicating reduced interest in American assets. Oil prices decreased on Thursday following unexpected increases in US crude and fuel stocks, suggesting demand weakness, whilst market participants remained cautious about renewed nuclear discussions between Iran and the United States. Foreign portfolio investors purchased shares worth Rs 2,202 crore net on Wednesday. Domestic institutional investors acquired Rs 684 crore net. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
