FPIs have withdrawn Rs 12,000 crore from shares so far in October, put Rs 5,700 crore in bonds.
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New Delhi. Due to rising bond yields in the US and uncertainty caused by the Israel-Hamas conflict, foreign portfolio investors (FPIs) have withdrawn Rs 12,000 crore from Indian stock markets so far in October. However, during this period, FPIs have also injected more than Rs 5,700 crore into the Indian bond market.
Himanshu Srivastava, Associate Director and Manager Research, Morningstar India, said, “Going forward, FPI investments in Indian markets will be influenced not only by global inflation and interest rates, but also by developments related to the Israel-Hamas conflict.” Geopolitical tensions are a risk that could impact foreign capital flows into emerging markets like India.
According to depository data, this month till October 20, FPIs have sold shares worth Rs 12,146 crore. Earlier in September also, FPIs were net sellers and had sold shares worth Rs 14,767 crore. FPIs had been continuous buyers during the last six months from March to August. During this period he had invested Rs 1.74 lakh crore in the stock markets.
VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said that the main reason for the selling by FPIs is the continuous rise in bond yields in America. The bond yield (for 10 years) in America has reached a 17-year high of five percent on October 19. With this, the total investment of FPIs in shares so far this year has exceeded Rs 1.08 lakh crore and in the bond market has exceeded Rs 35,000 crore.
Disclaimer: IndiaTheNews has not edited this news. This news has been published from PTI-language feed.
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