Mint Quick Edit | The great FPI exit: Will inflows revive?
₹35,527 crore worth of Indian shares, extending their selling to a second month. Meanwhile, domestic investors pumped in ₹41,720 crore.
Strong domestic buying support has meant markets haven’t tumbled the way they once would at the faintest indication of foreign investors making their way out. But our stock indices haven’t risen much lately either, even as volatility has spiked.
With elections underway, FPI selling is being linked to the risk of a power shift. Is that prospect being over-estimated? Unlike domestic investors, foreign investors have a bigger play-field, with other markets competing for their money.
India’s capital inflows often depend on interest rate conditions and risk dispositions in the West, not to mention our rupee policy. By global comparison, though, Indian shares look overpriced for their earnings.
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