FPIs’ selling spree continues; Rs 22,530 cr pulled out from equities in Jan

Key Highlights

• According to data from NSDL, FPIs pulled out Rs 22,530 crore from Indian equities between January 1 and 16.
• Market experts attributed the continued withdrawal to a combination of global and domestic factors.
• “Rising US bond yields and a stronger dollar have improved risk-adjusted returns in developed markets, prompting capital reallocation away from emerging markets,” said Sachin Jasuja, Head of Equities and Founding Partner at Centricity WealthTech.
• Echoing similar views, Himanshu Srivastava, Principal-Manager Research at Morningstar Investment Research India, said elevated US bond yields and dollar strength have made US assets relatively more attractive.
• He added that geopolitical and trade-related uncertainties continue to weigh on emerging market risk appetite.