Foreign portfolio investors (FPIs) have withdrawn over Rs 12,000 crore from Indian equities this month so far, mainly due to a sustained rise in US bond yields and the uncertain environment resulting from the Israel-Hamas conflict.
However, the story takes an intriguing turn on observing FPI activity in Indian debt as they have infused over Rs 5,700 crore into the debt market during the period under review, data with the depositories showed.
Going ahead, the trajectory of FPIs’ investments in India will be influenced not only by global inflation and interest rate dynamics but also by the developments and intensity of the Israel-Hamas conflict, Himanshu Srivastava, Associate Director – Manager Research, Morningstar Investment Adviser India, said.
Geopolitical tensions tend to elevate risk, which typically hurts foreign capital inflows into emerging markets like India, he added.
According to the data with the depositories, foreign portfolio investors (FPIs) sold shares worth Rs 12,14
| Subscribe To Our Free Newsletter |
