Budgets presented by the previous Congress-led United Progressive Alliance government left foreign investors edgy. Yet, it was the Bharatiya Janata Party-headed National Democratic Alliance’s third budget in 2016 that scared them the most.
That’s what an analysis of equity inflows by foreign portfolio investors suggests. Six out of the last 11 times, FPIs pulled out money on the day of the budget, according to Bloomberg and National Securities Depository Ltd. data. Five of those six budgets were presented by a UPA finance minister.
Foreign investors withdrew the highest amount on Feb. 29, 2016, when Arun Jaitley presented the budget for the year 2016-17. P Chidambaram’s 2007 speech followed.
Pranab Mukherjee’s 2010 budget got the biggest thumbs-up, with FPIs pumping in the highest amount that day.
Note: FPI inflow data for Feb. 28, 2015, Jaitley’s second budget, was clubbed with the previous day’s tally so couldn’t be factored in for comparison. (With Bloomberg Quint)
