IANS | 28 Apr, 2024
Heavy selling by Foreign Portfolio Investors (FPI) in the equity
markets is getting absorbed by domestic funds and retail investors.
In
April, FPI selling in equity stands at Rs 6304 crore. In the cash
market during this period, the equity selling stood at Rs 20525 crore.
In the debt market also, there is a trend of renewed selling. The debt
sales in April stand at Rs 10640 crore, says V K Vijayakumar, Chief
Investment Strategist, Geojit Financial Services.
The trigger for
this renewed FPI selling, in both equity and debt, is the sustained rise
in US bond yields. The 10-year bond yield now stands at around 4.7 per
cent which is hugely attractive for foreign investors, he said.
The
latest core CPI inflation in the US jumped to 3.7 per cent against the
expectation of 3.4 per cent. This means the prospects of early rate cuts
by the Fed are receding. This will keep yields high triggering more FPI
outflows in both equity and debt, he said.
“The positive factor
is that all FPI selling in the equity markets is getting absorbed by
DIIs, HNIs and retail investors. This is the only factor that may reign
in FPI selling,” he added.
