The outflow of funds from Foreign Portfolio Investors (FPIs) in the Indian market is slowing down. The new trend since the beginning of July suggests that the sell-off by foreign investors is coming to an end. So far this year, FPIs have been the only net sellers in the market due to a strong dollar, high commodity prices, inflationary pressures, geopolitical tensions and rising interest rates. But the recent recovery in domestic equities and relief from concerns over macroeconomic risks indicate that the selling practices of FPIs may be on the verge of a bullish exit. However, a lot will depend on the further performance of the rupee. If the Indian rupee strengthens at current levels, FPI sales are expected to come down.
so far in july FPI have taken out 4,418 crore from the Indian market. Selling is slower than last week. Out of total, equity market Most Viewed Outlaws on Tunes of 4,096 crore this month, while Debt-VRR took out 844 crores from the market and only Withdrawal of 7 crores from hybrid market saw buying sentiment with the influx of loan market 529 crore in the month so far.