International Institutional Funding (FII) outflows from India’s fairness markets present that traders are reserving income, indicating investments in India are yielding good returns, Finance Minister Nirmala Sitharman stated at a post-Funds media briefing in Mumbai on Monday (February 17, 2025).
“FIIs additionally exit when they can, or ready to e-book income. Indian economic system right this moment has an atmosphere through which investments are additionally main good returns. That’s additionally occurring,” Ms. Sitharaman stated, dismissing considerations that the Indian inventory market had change into much less enticing for retail and overseas traders alike.
Additionally learn: Union Funds 2025-26: Highlights from Nirmala Sitharaman’s post-budget presser
Underlining the volatility of overseas traders, Finance Secretary Tuhin Kanta Pandey stated, “As you realize that FIIs hold shifting up and down relying upon the place they need to actually park themselves. And it’s not true that FIIs are actually shifting from one rising market to a different.”
He additional stated that every time there was a world uncertainty, “they’re prepared to return to the U.S., the place they belong.”
Acknowledging that there have been demand-supply points that must be stuffed, he stated that these had been short-term and the Indian economic system was resilient. He asserted that the monetary sector can’t be in a bubble and the returns had been finally in the actual sector, the place there may be much less trigger for fear.
The statements from the Finance Ministry assume significance within the context of continued FII outflows from India’s fairness markets. Specialists cite tariff uncertainty with the U.S., tepid company earnings and unsure home progress as draw back dangers behind the volatility in FPI outflows.
Printed – February 17, 2025 10:52 pm IST
