Market participants said that India's bond inclusion in J P Morgan index further aided inflows in the domestic debt market
The National Stock Exchange (NSE) Nifty Midcap 100 index fell 4.1 per cent, the most since June 2022
With this, these investors will not be able to use overseas insurance companies to secretly own shares of a company and manipulate its share prices
Will they weather the tempest of withdrawing Rs 25,305 crore since September, or is a perfect storm brewing for Indian equities?
The MF industry has not yet released the inflow data for September
Global headwinds may add to volatility in stocks
This makes Indian bonds less attractive to foreign investors
Meanwhile, they were net sellers in metal stocks worth Rs 5,930 crore, financial services worth Rs 3,672 crore, and oil, gas and consumables worth Rs 1,778 crore
Inflows doubled in August from July on bond indices inclusion hope
They also bought shares worth Rs. 1,609 crore in auto and auto components and Rs. 1,520 in construction stocks
The RFQ is a dedicated platform for debt securities, launched in 2020 by stock exchanges
After five months of sustained buying, foreign investors have turned net sellers and pulled out over Rs 2,000 crore from the Indian equities in the first week of August, mainly due to Fitch downgrading the credit rating for the US. In addition, the rich and stretched valuations and minor profit booking could be the reasons for this outflow, Yes Securities Chief Investment Advisor Nitasha Shankar said. "A sharp spike in the US 10-year bond yield above 4 per cent is a near-term negative for capital flows to emerging markets," Geojit Financial Services Chief Investment Strategist VK Vijayakumar said. If the US bond yields remain high, FPIs are likely to continue selling or at least refrain from buying, he added. According to the data with the depositories, Foreign Portfolio Investors (FPIs) withdrew a net sum of Rs 2,034 crore from Indian equities during August 1-5. This came after unabated net inflow in the past five months -- from March to July -- following the resilience of the In
Meanwhile, chemical stocks saw selling worth Rs 207 crore, followed by metals and mining (Rs 157 crore) and textiles (Rs 156 crore)
The RBI intervened and the rupee hit the 81.90 level in intraday trade. The rise in crude oil prices further weighed on the Indian currency
From this year's low in March, the Sensex and the Nifty are now up around 15 per cent each
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