In charts: FPIs go on selling spree in September: What lies ahead
SummaryIndian equity markets sank in sloppy action last week with persistent selling by overseas investors, triggered by a spike in US bond yields and a rising US dollar index
Indian equities had a tumultuous ride last week after the US Federal Reserve indicated that it could keep interest rates elevated for longer than expected before. The Fed projections pushed the US Treasury yields to a 16-year peak and lifted the dollar index. In response, foreign portfolio investors (FPIs) have turned sellers in Indian equities in September so far, after months of investing heavily. The ongoing India-Canada tiff, rising crude oil prices, and erratic rainfall have also dampened investors’ sentiments. Market analysts believe that uncertain global cues and the sharp surge in US bond yields will keep sentiments on the edge in the near term.