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In the first half of October this year, foreign investors have withdrawn nearly ₹7,500 crore from the Indian stock market on concerns of monetary policy tightening by the US Federal Reserve and other central banks globally, which could hamper global economic growth.
In addition to equities, foreign investors have pulled out ₹2,079 crore from the debt market during the period under review. Data from NSDL showed that FPIs outflow stood at ₹1.76 lakh crore so far in 2022.
Between October 3 and 14, the overseas investors pulled ₹7,458 crore. FPI flows were negative for the Philippines, Taiwan, and Thailand this month so far.
This came following an outflow of over ₹7,600 crore in September on the hawkish stance of the US Fed and the sharp rupee depreciation.
In August, FPIs made their largest buying of the current year with an inflow of ₹51,204 crore. The foreign investor remained net buyers in the first two months (July and August) of the second quarter of FY23.
Between January to June, FPIs pulled out a record ₹2,17,358 crore from the equity market. Currently, June witnessed the most selling in the year with an outflow of ₹50,203 crore.
According to Himanshu Srivastava, Associate Director – Manager Research, Morningstar India, the latest pullout by FPIs was largely driven by the concerns of the monetary policy tightening by the US Federal bank and other central banks globally.
Geojit Financial Services Chief Investment Strategist VK Vijayakumar said the major trigger for FPI selling is a sustained, “rise in the dollar and expectations that the dollar will continue to remain strong in the current global macro construct”.
Further, he noticed that an important trend in FPI selling which is, the selling is in financials and IT which form the largest chunk of FPI holding. FPIs have been selling in oil and gas and metals too since these segments too will be impacted by a global economic slowdown, he added.
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(This story has not been checked by Kashmir Bulletin and is auto-generated from other sources)
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