New Delhi: Foreign portfolio investors (FPIs) have pulled out equity worth Rs 50,203 crore from India in the month of June. National Securities Depository Information
FPIs have been continuously selling equities in the Indian markets for the past nine to ten months for various reasons, including tightening of monetary policy, widening current account deficit due to depreciating rupee, appreciation in dollar and bond yields in the US.
FPIs generally prefer advanced economies in times of sharp volatility and uncertainty in the overall financial markets.
NSDL data shows that in 2022 so far they have sold equity worth Rs 217,619 crore. During the same period, Sensex And nifty Each declined by more than 10 percent.
“This massive capital outflow has contributed significantly to the depreciation in INR which recently exceeded $79. Continued FPI sales should be viewed in the context of the ever-increasing dollar and bond yields in the US.” VK Vijaykumarchief investment strategist Geojit Financial Services,
“FPIs in countries with a growing current account deficit like India are selling more as the currencies of such countries are more vulnerable to depreciation. FPI sales are showing a declining trend at the end of June.”
Vijayakumar said this trend will stop only when the dollar stabilizes and US bond yields decline.
FPIs have been continuously selling equities in the Indian markets for the past nine to ten months for various reasons, including tightening of monetary policy, widening current account deficit due to depreciating rupee, appreciation in dollar and bond yields in the US.
FPIs generally prefer advanced economies in times of sharp volatility and uncertainty in the overall financial markets.
NSDL data shows that in 2022 so far they have sold equity worth Rs 217,619 crore. During the same period, Sensex And nifty Each declined by more than 10 percent.
“This massive capital outflow has contributed significantly to the depreciation in INR which recently exceeded $79. Continued FPI sales should be viewed in the context of the ever-increasing dollar and bond yields in the US.” VK Vijaykumarchief investment strategist Geojit Financial Services,
“FPIs in countries with a growing current account deficit like India are selling more as the currencies of such countries are more vulnerable to depreciation. FPI sales are showing a declining trend at the end of June.”
Vijayakumar said this trend will stop only when the dollar stabilizes and US bond yields decline.