Further, India moving up in the World Bank ranking of ‘ease of doing business’ also buttressed positive sentiments, said Himanshu Srivastava, Senior Analyst Manager Research at Morningstar India. Additionally, slight improvement in global sentiments and stable currency could have also turned the tide in India’s favour, he added. Going forward, FPI flows may sustain as second quarter earnings are progressing well, Sharekhan Head Advisory Hemang Jani said.
Apart from equities, overseas investors have infused a staggering Rs 16,000 crore in the debt segments last month due to “high nominal and real yields”. “Indian bonds remain attractive on high nominal and real yields as well with the backdrop of macroeconomic stability and hence it continues to attract FPIs,” Quantum Adviors Head Fixed Income and Alternatives Arvind Chari said.