Capital inflows into India to slow down: Stanchart
India's move to curb foreign investments into local shares by unregistered investors may slow the pace of capital inflows, leading to a slowing impact on the rupee's rise, Standard Chartered Bank said in a note.
By Agencies |
MUMBAI: India's move to curb foreign investments into local shares by unregistered investors may slow the pace of capital inflows, leading to a slowing impact on the rupee's rise, Standard Chartered Bank said in a note.
It expects portfolio investments to slow down as unwinding of existing positions from derivatives segment or from unregistered sub-accounts continue.
In the coming 18 months, inflows can slow down or even turn negative for a few months, but any huge immediate outflows may not take place, Shuchita Mehta and Anubhuti Sahay, analysts at the bank wrote. As domestic fundamentals remain strong, the case for a stronger rupee persists in the medium term.
It expects portfolio investments to slow down as unwinding of existing positions from derivatives segment or from unregistered sub-accounts continue.
In the coming 18 months, inflows can slow down or even turn negative for a few months, but any huge immediate outflows may not take place, Shuchita Mehta and Anubhuti Sahay, analysts at the bank wrote. As domestic fundamentals remain strong, the case for a stronger rupee persists in the medium term.
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