FPI sell-off continues; pulls out ₹22,420 cr so far in Nov
Experts attribute the relentless FPI selling to weak earnings, high valuations, and rising US bond yields.
Experts attribute the relentless FPI selling to weak earnings, high valuations, and rising US bond yields.
INR closed marginally lower at 83.55 against the U.S. dollar on Friday, hovering near its lifetime low of 83.57, amid intervention by the RBI.
FPIs turned net buyers in both equity and debt in April, investing ₹11,631 crore in Indian equities and ₹806 crore in the debt market, as per NSDL data.
A year after the onslaught of the global pandemic, FPI inflows, corporate performance, and news of the vaccines were key to the Indian equity markets’ immunity against Covid-19.
The Covid-19 pandemic failed to affect the bulls’ spirits, as benchmark indices saw absolute annual gains between 75.2% and 117.2% while FPIs pumped in a record ₹2.74 lakh crore into equities.
According to a BofA Securities report, the Covid-19 shock could delay India touching the GDP of Japan by three years. In their latest estimates, it will now happen by 2031 if the economy grows at 9%.
Rising inflation and firming bond yields in the U.S. push down Indian benchmark indices, causing a correction of around 6% from the latest life–highs of February 16.
Absence of new taxes, no tweaking of older ones, infrastructure capex focus, and stronger disinvestment intent boosts equity indices, with the Sensex recording its best Budget-day gains since 1997.
Despite the Survey’s positive tone, the Sensex and Nifty 50 closed in the red, falling nearly 8% in a matter of five trading sessions from their January 21 life–high.
Market experts welcome the 30–stock benchmark adding 6,000 points since December 1, but also caution against stretched valuations.