Foreign institutional investors (FIIs) have increased their purchases of shares in India, leading to a revival of the Indian stock market and making it one of the best performing emerging markets. In April alone, FIIs purchased INR11,630 crore ($1.7bn) of shares, compared with INR7,935 crore the previous month. This was based on a series of factors including easing inflation both in India and the US, the Reserve Bank of India’s decision to pause rate hikes, and a good set of March quarter earnings. Financial services, automobiles and fast-moving consumer goods were among the top sectors receiving investment.
Banks unlikely to reduce deposit rates despite RBI easing
Following the latest repo rate decrease, bankers foresee only slight adjustments to deposit rates. The landscape, characterized by sluggish savings yields and elevated credit-deposit ratios,