FPI selling moderates to ₹5,806 crore as investors seek safety of risk-free US bond yields

livemint.com:

₹5,806 crore worth of Indian equities and the total inflow stands at ₹1,525 crore as of November 10, taking into account debt, hybrid, debt-VRR, and equities, according to National Securities Depository Ltd (NSDL) data. FPIs have reversed the prior three-month trend of sustained buying and emerged net sellers in September and October. Surging US bond yields have been the major reason for FPI outflows since last month, according to analysts.

Also Read: FII outflow moderates to ₹252 crore, DIIs infuse ₹823 crore as Nifty 50 reports weekly gain; What lies ahead? "The FPI selling trend which started in September continued in October and is showing no signs of reversing in November even though the intensity of selling has come down this month,'' said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. After the latest US Federal Reserve policy outcome on November 1, the US bond yields have sharply corrected to 4.66 per cent on Fed Chair Jerome Powell's dovish commentary.

The rate-setting Federal Open Market Committee decided to keep the key overnight interest rates unchanged at 5.25-5.50 per cent - a 22-year high mark for the second straight meeting. Other major central banks including Bank of England and Bank of Japan have also kept a pause on the key interest rates - similar to the US Fed. After peaking at 5 per cent on October 19, the US bond yield started to decline.