FPIs pull out Rs 12,300 crore in April so far on US Fed rate hike fears

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Fears of an aggressive rate hike by the US Fed continue to dent investor sentiments with foreign investors pulling out nearly Rs 12,300 crore from the Indian equity market so far this month.

Going forward, foreign flows into Indian equities could continue to be under pressure due to an imminent rate hike by the US Fed, uncertainty surrounding the Russia-Ukraine war, volatile crude prices, high domestic inflation numbers and weak quarterly results, experts said.

Foreign portfolio investors (FPIs) remained net sellers for six months to March 2022, withdrawing a massive net amount of Rs 1.48 lakh crore from equities. These were largely on the back of anticipation of a rate hike by the US Federal Reserve and due to the deteriorating geopolitical environment following Russia’s invasion of Ukraine.After six months of selling spree, FPIs turned net investors in the first week of April and invested Rs 7,707 crore in equities. After a short breather, once again they turned net sellers to the tune of over Rs 4,500 crore during the holiday-shortened April 11-13 week and the sell-off continued in the succeeding week too. This makes foreign investors net sellers to the tune of Rs 12,286 crore in this month so far (April 1-22), data with depositories showed. WITH PTI

Read the full article at: indianexpress.com

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