FPIs Pull Rs 20,974 Crore from Indian Equities Amid Global Uncertainty
Foreign Portfolio Investors (FPIs) have withdrawn a significant Rs 20,974 crore from Indian equities in September, reversing previous months' inflows. The outflow is driven by escalating global uncertainties, rising US interest rates and bond yields, and elevated crude oil prices.
The Federal Reserve's rate hikes have narrowed the yield differential between India and the US, making Indian assets less attractive to foreign investors. Brent crude has remained above $100 a barrel, adding to concerns over inflation and India's import bill. The rupee has also come under pressure, declining 1.1% in the previous week.
Experts suggest that the selling is a broader emerging market trend influenced by oil prices and US yields, rather than specific issues with India. 'September's FPI selling is a crude-and-dollar story, not an India story,' said Vedant Gupte, Co-Founder and CEO of Trackk. 'When oil spikes and US yields firm up, money leaves every emerging market and India isn't being singled out; it's being caught in the tide.'