FPIs offload ₹20,000 crore in Indian equities in four sessions on rising US bond yields
₹20,000 crore in just four trading sessions. On Thursday, FPIs sold ₹4,260 crore, followed by ₹4,468 crore on Tuesday and ₹3,268 crore on Monday. Last Friday (April 12), they offloaded ₹8,027 crore, bringing the cumulative four-day sell-off to ₹20,023 crore, according to National Stock Exchange (NSE) data.
Consequently, Indian benchmark indices have witnessed significant declines in recent sessions. Over the past five trading days, both the Nifty 50 and Sensex concluded in negative territory, experiencing losses of 2.85% and 2.9%, respectively. FPIs selling trend of selling is not confined to India alone; foreign investors are also divesting from stocks in other emerging markets.
They perceive safer opportunities with lower risk in assets such as government-backed bonds and gold. Also Read: Crude oil prices jump 4% on reports of Israel strikes on Iran; Brent crude above $90 a barrel US bond yields have seen a consistent uptrend since the March inflation data surpassed analysts' expectations. Additionally, the US economy displayed strength with retail sales surging 0.7% in March, exceeding the anticipated 0.3%, indicating resilient consumer spending despite interest rates hitting a 23-year high.
The U.S. 2-year Treasury yield rose close to 5% on Thursday, while the yield on the 10-year Treasury rose by nearly 5 basis points to 4.633%. Also Read: Gold prices jump after escalation in Iran-Israel tensions.
Should you buy in this rally? Further, the recent release of manufacturing activity in the U.S. Mid-Atlantic region expanded by the most in two years in April on the strength of new orders and shipments of finished goods, although factory employment continued to fall, which showed strength in the U.S. economy, as per the
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