FPIs withdraw Rs 7,500 cr from Indian equities in Oct on rate hike concerns

The flows from FPIs have been inconsistent over the last few months as they kept on changing their stance frequently tracking the fast-changing investment scenario

Foreign investors have pulled out nearly Rs 7,500 crore from the Indian equity markets in the first two weeks of October on concerns of monetary policy tightening by the US Federal Reserve and other central banks globally, which could hamper global economic growth.

Going forward, FPI flows are expected to remain volatile in the coming months due to ongoing geo-political risk, elevated inflation, expectation of rising treasury yields, etc, Shrikant Chouhan, Head-Equity Research (Retail) at Kotak Securities, said.

"The markets were cautious ahead of the release of the US CPI print, which may determine the pace of future rate hikes