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Analysts expect FII flows to Indian equities to pick up in H2

However, analysts do caution against intermittent phases of withdrawals by FIIs given macro-economic developments across major world economies

Foreign investors make a strong comeback
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Meanwhile, markets here have seen a sharp drop, with the S&P BSE Sensex and the Nifty50 skidding 7 per cent each from their respective high levels logged in October 2021.

Puneet Wadhwa New Delhi
The worst may soon be over for foreign flows into domestic equities, observe analysts. They expect foreign investors to return to emerging markets, including India, as global central banks — especially the US Federal Reserve (Fed) — become less aggressive in hiking rates to rein in runaway inflation.

“Fed Chair Jerome Powell wants to slow down at some point after a 75-basis point (bp) hike on Wednesday. The Federal Open Market Committee may be thinking of a 50-bp (hike) in September, followed by 25 bps in the remaining two meetings,” wrote Philip Marey, senior US strategist at Rabobank International, in

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First Published: Jul 28 2022 | 10:13 AM IST

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