BS EDIT: Foreign investor caution shapes India’s financial landscape

By Business StandardPublished On Nov 5, 2024

Volatility and caution

Uncertainty drives 2024-25 volatility as FPIs sell Rs 8,644 crore in Indian equities, with peak sales in April, May, and October amid political events

Poll outcomes & FPI moves

FPI selling surged in April-May amid India’s elections, spiking again in October due to US elections and Federal Reserve policy uncertainty

US bond yields

Rising US bond yields impact India’s market outlook; FPIs await Federal Reserve meeting, reassessing positions for stability before re-entry

China's stimulus & reallocation

FPIs shift resources to China after its stimulus package, adjusting emerging market allocations and reducing India holdings

Implications of US polls

A Kamala Harris win could mean policy continuity, but Trump’s proposed shifts on import duties and immigration may affect India's IT sector

Domestic bullishness

Indian institutions stay optimistic with strong retail inflows, yet a 9 per cent Nifty dip urges caution amid global uncertainties