FPIs turn out net sellers this week with net withdrawal of Rs 976 crore
FPIs began the week on a positive note, investing Rs 3,126 crore in equities during the first two trading sessions between December 16-20.
According to the National Stock Exchange (NSE) data, foreign portfolio investors (FPIs) have divested Indian equities worth over Rs 20,000 crore in just four trading sessions.
The development came amid escalating tensions in the Middle East and a substantial surge in the US bond yields.
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On Thursday, FPIs sold Rs 4,260 crore, followed by Rs 4,468 crore on Tuesday, and Rs 3,268 crore on Monday. (The stock market was closed on Wednesday).
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Last Friday, the FPIs offloaded Rs 8,027 crore, bringing the cumulative four-day sell-off to Rs 20,023 crore.
Amid the geopolitical tensions, the FPIs selling trend is not only confined to India but the foreign investors are also divesting from stocks in other emerging markets.
Notably, the US bond yields have seen a consistent uptrend since the March inflation data surpassed analysts’ expectations.
Additionally, the US economy displayed strength with retail sales surging 0.7 per cent in March, exceeding the anticipated 0.3 per cent, indicating resilient consumer spending despite interest rates hitting a 23-year high.
Amid the reports of explosions in Iran, Iraq, and Syria, Indian stocks extended their downward trend for the sixth consecutive trading session on Friday.
Indian benchmark indices have witnessed significant declines in recent sessions. Over the past five trading days, both the Nifty 50 and Sensex concluded in negative territory.
Further, the Indian rupee plummeted to another historic low of 83.83 against the US dollar, driven by the strengthening of the US dollar index.
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