INSUBCONTINENT EXCLUSIVE:
Mumbai: Foreign institutional investors have been selling Indian shares all through this month, hurt by the income-tax surcharge on the
super-rich, which will hurt foreign investors that are not registered as corporates
And the pain is likely to continue.
FIIs have sold a net of $1.2 billion of Indian equity shares so far in July
If the selloff continues, it would be worst month since October 2018.
The 30-share Sensex, which had risen 1.75 per cent in May, and has
strategist at NN Investment Partners, The Hague.
In the Union Budget, the government proposed to increase income-tax surcharge on the
super-rich, which would also include non-corporate foreign entities.
The move spooked investors, as the surcharge will impact 40 per cent of
FPIs, as per various industry estimates
his organization has not sold Indian shares in recent times.
Others agreed that the higher income-tax surcharge was the reason behind FII
Investment, told ETNow.
From February to June, FIIs invested a net of $11.4 billion in Indian equities
For the year to date, they have invested a net of $0.1 billion.
According to Krishna Memani, Vice-Chairman of Investments at Invesco, from
an FII standpoint, Indian equities suffer from several disadvantages at the moment.
Relative to other emerging markets, Indian equity
The Indian Budget and policy initiatives after the elections have been a disappointment
Liquidity conditions in the country are not getting better and as a result the growth outlook is deteriorating rather than improving, and
finally, the dollar is not expected to weaken meaningfully, Memani said.
The IMF on Tuesday projected a slower growth rate for India in 2019