FDI inflows have improved to $13.6 billion in Q1FY23: RBI Governor

#FIIandDII #Inflation #MonetaryPolicy

FDI improved to 13.6 billion dollars in Q1FY23 as compared to 11.6 billion dollars in Q1FY22
RBI MPC voted unanimously to hike the benchmark interest rate by 50 bps to 5.4%
FIIs sold shares worth a net Rs 6,567.71 crore while DIIs bought shares worth a net Rs 10,546.02 crore in July 2022

Written By:Yash

Updated: August 04 2022 07:53:55 PM ET

Foreign Direct Investment (FDI) improved to 13.6 billion dollars in the first quarter of the current financial year as compared to 11.6 billion dollars in the first quarter of last year said RBI Governor Shaktikanta Das.

Foreign institutional investors (FIIs) bought shares worth a net Rs 1474.77 crore, while domestic institutional investors (DIIs) sold shares worth a net Rs 46.79 crore in the Indian equity market on August 4, as per provisional data available on the NSE.

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In the month of July 2022, FIIs sold shares worth a net Rs 6,567.71 crore while DIIs bought shares worth a net Rs 10,546.02 crore.

Despite the drawdown of foreign exchange reserves to limit rupee volatility, India’s reserves remain the fourth largest globally said RBI Governor.

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India is facing USD 13.3 billion capital outflow in last few months. Consumer price inflation has eased from its surge in April but remains uncomfortably high and above upper threshold of target, he added.

The RBI Governor on Friday announced that the Monetary Policy Committee voted unanimously to hike the benchmark interest rate by 50 basis points (bps) to 5.4% with immediate effect. The Standing Deposit Facility (SDF) rate is adjusted to 5.15%. The Marginal Standing Facility (MSF) and bank rate are revised at 5.65%.

The MPC has retained the Consumer Price Index (CPI) Inflation projection for FY23 at 6.7%. The second quarter CPI is seen at 7.1% compared to 7.4% previously, while Q3 CPI is seen at 6.4% against 6.2% projected earlier. The Q4 CPI projection is retained at 5.8%. The Q1FY24 CPI is seen at 5%.

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The Real GDP growth projection for FY23 retained at 7.2% with Q1 at 16.2%, Q2 at 6.2%, Q3 at 4.1% and Q4 at 4% with risks broadly balanced. The real GDP growth for Q1 FY24 is projected at 6.7% said RBI Governor Shaktikanta Das.