Adopting a cautious stance, foreign investors (FPI) have pulled over ₹4,500 crore from the Indian equity market last week on fears of an aggressive rate hike by US Federal Reserve.
This comes following a net investment of ₹7,707 crore by foreign portfolio investors (FPIs) during April 1-8 as a correction in the markets provided a good buying opportunity, data with depositories showed.
Prior to that, FPIs remained net sellers for six months to March 2022, withdrawing a massive net amount of ₹ 1.48 lakh crore from equities.
According to depositories data, FPIs have pulled out a net sum of ₹4,518 crore from Indian equities during the holiday shortened April 11-13 week.
These were largely on the back of anticipation of a rate hike by the US Federal Reserve and due to the deteriorating geopolitical environment following Russia’s invasion of Ukraine.
Sonam Srivastava, Founder at Wright Research, a Sebi-registered investment advisor, said, “We are hoping for FPIs to come back to India in a big way when the Ukraine crisis eases as our valuations have become highly competitive”.