FPIs remain net sellers in Indian equities, offload ₹12,146 crore on record-high US bond yields; What lies ahead?
₹12,146 crore worth of Indian equities and offloaded a total of ₹6,55 crore as of October 20, taking into account debt, hybrid, debt-VRR, and equities, according to National Securities Depository Ltd (NSDL ) data. The ₹12,146 crore-figure also includes bulk deals and investment in primary market.
The selling by FPIs in the cash market was higher at ₹16,176 crore. FPIs have reversed the prior three-month trend of sustained buying and emerged net sellers in September.
Surging US bond yields have been the major reason for FPI outflows since last month, according to analysts. “Flows from foreign institutional investors are expected to remain volatile on increasing concerns about elevated global interest rates, rising energy prices, and a mixed set of corporate earnings print in Q2FY24 so far,'' said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
‘’Heightening geopolitical tension in the Middle East and US Federal Reserve hinting at more rate hikes may see treasury yields staying higher, which could prompt further foreign fund outflows from emerging markets, including India,'' added Chouhan. MORE TO COME"Exciting news! Mint is now on WhatsApp Channels
. Read more on livemint.com
