Foreign investors pulled out domestic equities worth Rs 6,300 crore in April on concerns over tweaks in India’s tax treaty with Mauritius and sustained rise in US bond yields.
This came following a whopping net investment of Rs 35,098 crore in March and Rs 1,539 crore in February, data with the depositories showed.
Foreign Portfolio Investors (FPIs) made a net outflow of Rs 6,304 crore in Indian equities this month (till April 26), the data showed.
“The trigger for this renewed FPI selling, in both equity and debt, is sustained rise in US bond yields. The 10-year bond yield now stands at around 4.7 per cent, which is hugely attractive for foreign investors,” V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said.
While the tweak in India’s tax treaty with Mauritius on investments made in India via the island nation continues to bother foreign investors, weak cues from the global markets with uncertain macro and interest rate outlook didn’t augur well for …
| Subscribe To Our Free Newsletter |
