Blitz Bureau
NEW DELHI: Foreign institutional investors (FIIs) who had turned aggressive buyers for the first time in calendar year 2024 (CY24) on a monthly basis, resorted to offloading positions soon after the Union Budget 2024 was presented on July 23.
The FIIs had bought shares worth Rs 25,108.69 crore (net) until July 22, 2024. However, in the next three trading sessions, they net sold shares to the tune of Rs 10,711.70 crore, shows data, thus bringing down their net monthly purchases to Rs 14,396.99 crore thus far in July.
Despite this, the net inflows in a single month this July remains at the highest since the last 13 months. So far CY24, FIIs have net sold stocks worth Rs 1.10 trillion. The sudden reversal in their mood in July is driven by changes in the treatment of capital gains for listed, unlisted and compulsory convertible debentures (CCDs), analysts said.
“It has been a double whammy for the FIIs who not only have to cope with the capital gains tax changes, but also a higher securities transaction tax (STT) in the F&O segment and changes in the treatment of CCDs. I see it more as a knee-jerk reaction to the developments. Over the next few months, corporate earnings growth, policy stance of global central banks, geopolitics and the US presidential election will take center stage,” said UR Bhat, co-founder & director at Alphaniti Fintech,
