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Foreign institutional investors (FIIs) withdrew USD 770.67 million from India on Thursday, including USD 440.86 million in equity outflows, USD 327.44 million in debt outflows, and USD 2.31 million in hybrid outflows. Despite these substantial outflows, total FII inflows for the calendar year 2024 remain strong at USD 18.24 billion. Furthermore, the fiscal year 2025 is set to see additional inflows amounting to USD 8.92 billion, according to a report by the State Bank of India (SBI).
According to the SBI report, India's domestic economy continues to show strong growth. The supply chain sector is performing well, and a key indicator of economic activity - e-way bill generation - reached a record high of 117.25 million in October, marking a 17 per cent year-on-year increase. This reflects a rise in business and trade activity across the country, signalling a positive trend for the Indian economy.
The mutual fund sector in India has also seen notable growth, with the share of domestic mutual funds in companies listed on the National Stock Exchange (NSE) reaching an all-time high of 9.45 per cent as of September 30, 2024. This increase, up from 9.18 per cent in June, was driven by a significant net inflow of Rs 89,038 crore during the quarter.
India's vegetable oil imports are forecast to decline to 15 million metric tons in the 2024-25 season due to favourable weather conditions that are expected to boost domestic production. Palm oil imports are expected to decrease from 9.8 million metric tons to 9.2 million, while sunflower oil imports are projected to rise from 2.9 million metric tons to 3.5 million.
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Market sentiment, however, was affected by factors such as foreign outflows and the recent US presidential election. As per ANI, the re-election of Donald Trump is likely to strengthen the US dollar, which could put pressure on emerging market currencies, including the Indian rupee.
On Thursday, the Indian stock market took a considerable hit, with both the Sensex and Nifty 50 falling over 1 per cent amid widespread selling. Indian benchmark indices wiped out the gains from the previous trading session. The rupee also took a blow, falling to an all-time low of Rs 84.38 during the session before closing at Rs 84.37, a 0.1 per cent drop from the previous day's close of Rs 84.28. The fall in the rupee was attributed to outflows from local equities and the expectation that Trump's re-election would boost the US dollar. (ANI)
(With inputs from ANI)
