FOMO or attractive valuation? What drew FIIs back to Indian equities?

The change in their stance, analysts said, stems from the hope that the global central banks, especially US Fed may go soft on rate hikes as inflation cools off over the next few months.

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Puneet Wadhwa New Delhi
Fear of missing out (FOMO) or fear of losing out (FOLO)? After a few months of relentless selling between October 2021 and June 2022, when foreign institutional investors (FIIs) pulled out over $30 billion from Indian equities, the tide seems to have turned since July — they returned to Indian shores and bought equities worth over Rs 40,000 crore to date.

On a year-to-date basis in calendar year 2022, India saw heavy outflows second only to Taiwan, while Brazil led inflows ($10 billion), suggests a recent report by BofA Securities.

The change in their stance, say analysts, stems from the

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First Published: Aug 22 2022 | 11:30 AM IST

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