FPIs pull out equities worth Rs 976 cr this week amid rising dollar, bond yields
Indian equities this week, with a net withdrawal of Rs 976 crore amid a strengthening US dollar and steady rise in US 10-year bond yields, impacting investor sentiment. Foreign Portfolio Investors (FPIs) began the week on a positive note, investing Rs 3,126 crore in equities during the first two trading sessions (December 16-20).
However, the trend reversed in the latter half of the week, with FPIs offloading equities worth over Rs 4,102 crore in the subsequent three sessions. This resulted in an overall net outflow of Rs 976 crore during the week, data from National Securities Depository Limited showed.
Despite this short-term reversal, the broader December trend remains positive. FPIs have infused Rs 21,789 crore into Indian equities so far this month, reflecting continued confidence in India's economic growth potential and its resilient markets.
FPIs adopted a cautious approach due to the US Fed meeting and uncertainty about its outcome and future policy direction, said Himanshu Srivastava, Associate Director, Manager Research, Morningstar Investment Research India.
While the Fed cut interest rates by 25 bps for the third time this year, it signalled fewer rate cuts in the future, dampening investor sentiment and triggering global market sell-offs, he added.
Stock Trading
Candlesticks Made Easy: Candlestick Pattern Course
By — elearnmarkets, Financial Education by StockEdge
Stock Trading
Market 104: Options Trading: Kickstart Your F&O Adventure
By — Saketh R, Founder- QuickAlpha, Full Time Options Trader
Stock
