Updated: December 13, 2021 10:21:04 am
Foreign portfolio investors (FPIs) remained net sellers in domestic markets to the tune of Rs 8,879 crore so far this month.
According to depositories’ data, FPIs pulled out Rs 7,462 crore from equities, Rs 1,272 crore from the debt segment and Rs 145 crore from hybrid instruments during December 1-10. This took the total net outflow to Rs 8,879 crore during the period. In the month of November, FPIs were net sellers to the tune of Rs 2,521 crore.
There continues to be concerns over the highly transmissible Omicron variant of coronavirus, which has impacted global growth outlook and could play a spoilsport, said Himanshu Srivastava, associate director (manager research) of Morningstar India. This has already turned investors risk-averse.
Adding to it, there is expectation of rising inflation and expectation of monetary tightening by the US Federal Reserve, Shrikant Chouhan, head- equity research (retail) at Kotak Securities, said.
V K Vijayakumar, chief investment strategist at Geojit Financial Services, said sustained selling has been seen in banking in which FPIs have the largest holding. They have been sellers in IT, too.
For the debt segment, he said the flow has largely been driven by the direction of the US dollar and US treasury yields.
— WITH PTI
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