FPIs invest ₹378 crore in Indian equities, snap 3-month selling streak on sharp decline in US bond yields
₹378 crore worth of Indian equities and the total inflow stands at ₹13,673 crore as of November 24, taking into account debt, hybrid, debt-VRR, and equities, according to National Securities Depository Ltd (NSDL) data. FPIs were net buyers till November 15, but reversed the selling trend and invested on November 15 and 16. During August, September October and till November 15, FPIs cumulatively sold stocks for ₹83,422 crore through the exchanges.
"There are some important developments that might influence FPI inflows into India. The better-than-expected decline in inflation in the US has given the market confidence to assume that the Fed is done with rate hike. Consequently the US bond yields have declined sharply with the 10-year benchmark bond yield correcting from 5 per cent in mid October to 4.40 per cent now,'' 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 and still declining 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.
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