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FPIs shunning Indian debt for other markets

At Rs 43,024 cr and climbing, sales may gain momentum after this week's US rate hike

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US dollar and euro notes (Photo: Reuters)

Foreign portfolio investors (FPIs) have stepped up their selling from the domestic bond market, following Donald Trump’s surprise victory in the US Presidential election and the demonetisation exercise at home.   In the past one month, FPIs have pulled out Rs 33,886 crore ($5 billion) from the domestic market, taking the entire year-to-date 2016 selling tally to a net Rs 43,024 crore ($6.3 billion). Considering an imminent rate hike by the US Federal Reserve by the end of this week, experts say the pull-out may not end soon, making the year one of the worst in terms ...