Even as equity segment saw robust outflows post the budget, foreign investors seem to have remained net buyers in the Indian capital markets this month.
As per the latest depositories data, during July 1-12 foreign portfolio investors withdrew a net sum of Rs 4,953.77 crore from equities.
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It poured in a net Rs 8,504.78 crore into the debt market, translating into a cumulative net investment of Rs 3,551.01 crore.
According to experts, the proposal in the Union Budget to hike surcharge on income tax for wealthy individuals, including foreign funds which are structured as trusts and association of persons, dented FPIs’ enthusiasm for Indian equities and may lead to a re-evaluation of their revelation to the domestic stock market.