Overseas funds reduced investments in some sectors this June. Fast-moving consumer goods saw the biggest selloff. Power sector also experienced significant outflows. Financial services received substantial inflows. Interest rate cuts by RBI boosted financial sector investments. Geopolitical tensions and trade issues may affect future flows. Chemicals, oil & gas, and capital goods saw some investment.
Market expects one more rate cut as inflation stays benign
Indian economists and bond market experts expect another quarter percentage point cut in policy rates. This follows the Reserve Bank of India’s recent rate reduction