The World Opinion

Tag: Indian Market

  • FPIs Go Bullish Again On Buying Equities In Indian Market | Economy News

    New Delhi: Foreign portfolio investors (FPIs) bought equities in the Indian stock market worth Rs 16,800 crore this week, taking the total buying to Rs 27,856 crore this month (till September 13). 

    As per NSDL data, FPIs were buyers of equity in the cash market on all days of the week. Industry watchers said that it is significant to note that unlike in previous weeks when FIIs were buyers through the primary market, this week, they were buyers through the exchanges.

    There are two reasons why FPIs have changed their strategy from selling to buying. There is a consensus now that the Fed will start cutting rates from this month onwards pushing the US yields down, facilitating fund flows from the US to emerging markets.

    Also, the Indian market is extremely resilient with strong momentum and missing out on the Indian market would be a bad strategy for FPIs. In 2024, the total investments by FPIs now stand at Rs 70,737 crore to date.

    According to Manoj Purohit, Partner and leader, FS Tax, Tax and Regulatory Services, BDO India, the month of September came with a full swing from the FPI fraternity which made a substantial infusion in the Indian equity market, recording the second highest single-day purchase of 2024.

    “This shift in the investment wave is largely attributable to the Indian equity market reaching new all-time highs. The robust inflows are due to underlying factors such as global confidence in India’s economic outlook and the government’s commitment to drive a long term growth story,” Purohit mentioned.

    FPIs are encashing at the right time to tab the Indian market amidst positive market sentiments, political stability, contributing to the rally. This incursion not only mirrors the growing attractiveness of Indian equities but also emphasises the confidence foreign participants have shown in India’s financial markets historically as well during geopolitical crises and other macro factors.

    Also, due to the market regulator’s timely actions on easing business norms, rolling out consultation papers on industry issues, being agile to accept and inculcate global best practices to make India a competitive and one of the most preferred destination for imbedding funds to get better returns as compared to other developing economies, said experts.

  • Elon Musk Set To Meet PM Modi In New Delhi: Know Why Tesla Is Keen On India Entry? | Mobility News

    New Delhi: Tesla and SpaceX CEO Elon Musk is coming to meet Prime Minister Narendra Modi in India. Elon Musk posted on X (formerly Twitter) that he is looking forward to meeting PM Modi in India. According to reports, Elon Musk will be in India on April 21 and 22. The billionaire will be in the country for 48 hours. Musk will meet Prime Minister Narendra Modi and other government officials as well as industry representatives.

    Why Tesla-Led Elon Musk Is Keen On India Entry? 

    Elon Musk’s interest in entering the Indian market with Tesla is fueled by multiple factors. From India’s growing interest in electric vehicles to its vast market potential, Musk sees a golden opportunity. But what exactly draws him to this South Asian giant?

    As we all know, interest in electric cars is rapidly increasing in India, but the market is still small. Last year, only 6 electric cars were sold out of 100, while in China, the figure is 22. In India, 80,000 cars were sold last year, while Tesla alone sells 1.8 Lakhs cars.

    The potential is massive in India. This promising opportunity is a significant factor driving Elon Musk’s decision to expand Tesla’s presence in the Indian market. (Also Read: Mahindra XUV 3XO: How Will This SUV Differ From XUV300?)

    Earlier, Tesla was not interested in exploring the Indian market due to heavy duties on electric cars. India has been imposing 100% import taxes on electric cars, meaning a Tesla priced at Rs 29 Lakhs rupees would cost around 60 Lakhs rupees in India.

    Now, the government has changed its policy. Any company investing 500 million dollars and setting up a factory as well in India can sell cars by paying a 15% import tax. There is hope that Tesla’s cars will be available for around 35 Lakhs rupees.

    To recall, Elon Musk and PM Modi met in New York in June. Tesla asked India many times to reduce import taxes on electric cars.

    Reportedly, Tesla might invest $3 billion to build a factory for making affordable electric cars in India. These cars, possibly the Model 2, could cost around Rs 25 lakh. Elon Musk may also reveal intentions to introduce Starlink, offering satellite internet in India. However, the regulatory approvals for Starlink are in the final stages, and the company is likely to receive a license soon. (Also Read: 2024 Hyundai Creta Surpasses 1 Lakh Bookings, 71% Bought Sunroof Models)

    Tesla currently has two vehicle manufacturing facilities outside the US — near Berlin (Germany) and in Shanghai (China). Tesla’s entry into India gives the country’s Make-in-India project a big boost after it got another mega brand Apple to manufacture iPhones in India.