Foreign Portfolio Investors (FPIs) have pulled out over Rs 20,300 crore from Indian equities this month so far, primarily due to a sharp surge in the US treasury yield, 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 Rs 6,080 crore into the debt market during the period under review, data with the depositories showed.
Going ahead, the future of FPI flows hinges on several factors, including the US Federal Reserve’s November 2 meeting and global economic developments, Mayank Mehraa, smallcase manager and principal partner at Craving Alpha, said.
In the short term, FPIs are expected to remain cautious amid global uncertainty and increasing US interest rates. Nonetheless, India’s strong economic growth prospects should maintain its appeal for foreign investors in both equities and debt, he added.
According to the data with the depositories, Foreign Portfoli
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