ANI
02 Jul 2022, 09:48 GMT+10
New Delhi [India], July 2 (ANI): Foreign portfolio investors (FPIs) have pulled out Rs 50,203 crore worth of equities from India in the month of June, according to the latest National Securities Depository data.
FPIs have been persistently selling equities in the Indian markets for the past nine-to-ten months due to various reasons, including tightening of monetary policy, rising current account deficit on account of depreciation of rupee, rising dollar and bond yields in the US.
FPIs typically preferred advanced economies in times of sharp volatility and uncertainty in the overall financial markets.
So far in 2022, they sold equities worth Rs 217,619 crore, NSDL data showed. During the same period, Sensex and Nifty declined over 10 per cent each.
"This massive capital outflow has significantly contributed to the depreciation in INR which breached 79 to the dollar recently. The relentless FPI selling has to be seen in the context of a steadily rising dollar and bond yields in US," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
"FPIs are selling more in countries with rising current account deficits like India because the currencies of such countries are vulnerable to further depreciation. Towards the end of June FPI selling has been showing a declining trend."This trend will be halted only when the dollar stabilises and US bond yields decline, Vijayakumar added. (ANI)Get a daily dose of Kolkata Sun news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Kolkata Sun.
More InformationZERMATT, Switzerland: Five skiers were found dead on a mountain in Switzerland near the popular ski resort of Zermatt, officials said...
TORONTO, Canada - Tens of thousands of people from across Canada have marched in support of Israel in a massive turnout in Toronto....
BOSTON, Massachusetts: U.S. President Donald Trump's administration has taken away Harvard University's right to enroll international...
WASHINGTON, DC - U.S. President Donald Trump on Monday said he believed God was behind his election loss in 2020, even though he has...
NEW YORK CITY, New York: Passenger numbers at Newark Liberty International Airport in New Jersey have dropped sharply, according to...
BRUSSELS, Belgium: European Union antitrust regulators are examining fees imposed by payment giants Visa and Mastercard, Bloomberg...
BOSTON, Massachusetts: U.S. President Donald Trump's administration has taken away Harvard University's right to enroll international...
New Delhi [India], May 28 (ANI): The Supreme Court on Wednesday extended till July the interim bail given to Ali Khan Mahmudabad, associate...
New Delhi [India], May 28 (ANI): Samsung Electronics plans to adopt glass substrate interposers from conventional silicon interposers,...
New Delhi [India], May 28 (ANI): Amid reports of the Centre considering an impeachment motion against Justice Yashwant Varma over allegations...
Gulmarg (Jammu and Kashmir),[India], May 28 (ANI): Jammu and Kashmir Chief Minister Omar Abdullah arrived at Gulmarg Club today to...
Kanpur (Uttar Pradesh) [India], May 28 (ANI): Uttar Pradesh Chief Minister Yogi Adityanath inspected arrangements in Kanpur on Wednesday...