FPIs pull out a record Rs 1.22 trn from Indian market so far this year

Turn net sellers after 3 years; rising rates, recession fears to blame; Sensex still up 4.8% YTD

Foreign portfolio investors (FPIs) have pulled out Rs 1.22 trillion ($16.58 billion) from the Indian stock market so far this year and are on course to hit the highest-ever outflows in a calendar year.

FPIs have turned net sellers in 2022 after being net buyers in the last three years. A combination of factors such as interest rate hikes by major central banks, weakness in the rupee, fears of global recession, and a spike in commodity prices have led to continuous pullout by overseas investors from domestic stocks.

The rate hikes and monetary tightening by central banks, including the US Federal Reserve,