FPI outflows in February 2022 have been the highest since March 2020. At that time, FPIs had withdrawn Rs 1,18,203 crore from the Indian markets.
FPI: Foreign portfolio investors (FPIs) withdrew Rs 35,506 crore from Indian markets in February. This is the fifth consecutive month that FPIs have been a seller in the Indian market. FPIs have continuously pulled money out of the Indian markets since October 2021. FPI outflows in February 2022 have been the highest since March 2020. At that time, FPIs had withdrawn Rs 1,18,203 crore from the Indian markets. According to depository data, FPIs have withdrawn Rs 31,158 crore from equities and Rs 4,467 crore from debt segment during February 1-25. However, during this time he has invested Rs 120 crore in the hybrid instrument.
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What is the opinion of experts
“FPI outflows have picked up after the US central bank announced a late interest rate hike,” said Himanshu Srivastava, Associate Director (Manager Research), Morningstar India. Because of this also FPIs have become cautious and are staying away from emerging markets like India.
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There may be more withdrawals
Shrikant Chauhan, Head of Equity Research (Retail), Kotak Securities said that the trend of FPIs is determined by the trend of rupee against the dollar, crude oil prices, yield on bonds in the US. In the US, FPIs prefer to invest in the bond market when the returns on 10-year bonds increase. Chouhan said that at present all these things are affecting FPIs. In such a situation, FPIs can make further withdrawals.
(Input-PTI)
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