Must appreciate Indian retail investors, says Sitharaman
New Delhi: Union Finance Minister Nirmala Sitharaman on Monday, while responding during Question Hour in the Lok Sabha, said that Indian retail investors should be appreciated.
“We must appreciate the Indian retail investors and their shock absorbing capacity brought into the Indian markets.
“Investment will have to be gauged not just looking at FPIs and FIIs which by very nature depend on the interest rate and also keep moving ups and downs,” said the Finance Minister. She added that FPIs and FIIs can be very tempted by interest rates elsewhere and prospects anywhere else.
“So FPIs and FIIs are obviously going to be coming in and going out because of their typical nature”, she told the House.
“What must be considered is the inflow of foreign direct investment,” she said, adding that the FDI continued during and subsequently thereafter.
She stated that the Indian retail investors deserved appreciation for developing a competent shock absorbing capacity and investing money into the stock markets in India.
The Finance Minister was responding to the question of Congress member Dr Shashi Tharoor who asked about the exiting Foreign Portfolios Investors (FPIs) and the Foreign Institutional Investors from the Indian Equity markets.