FPI Outflows: India's Equity Exodus Amid Global Tensions
Foreign investors withdrew nearly Rs 21,000 crore from Indian stocks in early August, driven by US-India trade tensions, weak earnings, and a depreciating rupee. However, easing US-Russia tensions and an upgraded credit rating could boost future FPI sentiment. Investment continues in some debt markets.
- Country:
- India
Foreign investors pulled nearly Rs 21,000 crore from Indian equities in the first half of August, citing concerns over US-India trade issues and disappointing corporate earnings.
Data shows that Foreign Portfolio Investors (FPIs) have withdrawn Rs 1.16 lakh crore in equities this year, fueled by global uncertainties and a weakening rupee.
Notably, India's upgraded credit rating and easing US-Russia tensions may positively impact future FPI activities, while sustained investments in debt markets highlight a differing focus.
(With inputs from agencies.)
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