FPIs pull out `7,200 cr after STT hike

New Delhi: Foreign investors injected over Rs33,600 crore into Indian equities so far this month on the expectation of continued policy reforms, sustained economic growth and a better-than-expected earnings season.

However, they pulled out over Rs7,200 crore from equities in the last three trading sessions (July 24-26) after the government hiked taxes on Futures and Options trades (F&O) and capital gains from equity investments in the Budget.

Market experts believe that Indian equity is well-positioned for the year to attract foreign investments. However, there may be some monthly volatility due to short-term news. "Indian equity market and bond market are favourably placed for the year. This should attract foreign flows into the country. There could be some volatility in the flows on a month-on-month basis due to short-term news flows," Nimesh Chandan, CIO of Bajaj Finserv AMC, said.