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Analysts Divided On RBI, Centre's Move To Attract Foreign Investors
Sentiment: NeutralHigh Priority
What Happened?
Analysts express mixed views on the Reserve Bank of India and Centre's initiatives to attract foreign investors. ASSOCHAM supports the measures, while Bernstein warns that tax cuts alone may not suffice.
Key points
- ASSOCHAM supports policy changes, including tax exemptions for foreign portfolio investments.
- Bernstein cautions that tax cuts alone won't ensure consistent foreign fund inflows.
- The Finance Ministry's Income-tax Amendment Ordinance exempts FPI investments in Government Securities from tax effective April 1, 2026.
- Bernstein revised its Nifty 50 target to 25,000, citing a deteriorating macroeconomic backdrop.
- The recent measures by RBI have helped the rupee recover nearly 2 percent from its lows.
Key insights
- Sustained foreign investment may depend on broader economic recovery beyond tax incentives.
- The government's proactive measures could enhance investor confidence in the long term.
- Market reactions to the revised Nifty target may indicate investor sentiment towards Indian equities.
Why it matters
The effectiveness of these measures could influence foreign investment levels in India.
Tags
Entities
Reserve Bank of India· OrganizationASSOCHAM· OrganizationBernstein· CompanyNifty 50· IndexIndia· Country
Source
Times Now
