FIIs view surge in markets as short-term positive

MUMBAI: It may be possible that foreign portfolio investors, who have pulled out over $5 billion since the beginning of this year, see the latest political developments in the country as a short-term positive. However, their outlook on the Indian markets has not changed.

With the deteriorating macroeconomic scenario, concerns over global crude price, lower corporate earnings and rising interest rates are still working on their minds. Overseas portfolio investors view the surge in the markets over the past few days as a blip.

Most of these institutional investors say that they are not revising their strategy for India in the light of the latest bounce in the market and following the political developments. Several leading FIIs have been underweight on India for a while now, and some have said they will continue to maintain their stand at least for the near-term.

FIIs have been net sellers close to $7 billion (Rs 27,614.20 crore) year-to-date. According to provisonal data, on Wednesday, FIIs were net buyers to the tune of Rs 1,306 crore.