FPI Outflows from Indian Equities to Persist on US Yields

By Market DeskFPI Outflows from Indian Equities to Persist on US Yields

Foreign Portfolio Investor outflows from Indian equities will continue due to elevated US bond yields, though selective primary market buying persists.

Market analysts anticipate that Foreign Portfolio Investor outflows from Indian equities will continue, driven primarily by high US bond yields. Despite this broad selling trend, overseas investors are maintaining a selective approach across different segments of the market. Experts note that while capital continues to exit the secondary market, selective buying persists in specific domestic segments.

Segment Shifts And Primary Market Inflows

Data indicates specific capital allocation figures across different market segments during the reporting period:

  • Secondary market exchange offloading reached Rs 25,682 crore by August 25.
  • Primary market investment totaled Rs 8,551 crore as of September 25.
  • The broader market recorded seven consecutive weeks of declines.

While large-cap stocks face sustained selling pressure, participants continue to target mid-cap and small-cap stocks alongside active primary market participation. The broader Indian market has faced substantial pressure, with Sensex and Nifty indices falling amid global geopolitical tensions and fluctuating crude oil prices. Experts suggest that while domestic growth indicators remain positive, external factors and market volatility will likely dictate near-term sentiment.

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