NEW DELHI: Foreign investors have adopted a cautious approach this month, offloading domestic equities worth Rs 13,000 crore in the first three weeks owing to high valuations of Indian stocks and surging US bond yields.
In contrast, foreign investors are bullish on the debt market and injected Rs 15,647 crore in the debt market during the period under review, data with the depositories showed.According to the data, foreign portfolio investors (FPIs) made a net withdrawal of Rs 13,047 crore in Indian equities this month (till Jan 19). They pulled out over Rs 24,000 crore from equities during Jan 17-19. Before this, FPIs made a net investment of Rs 66,134 crore in Dec.
“The US bond yield started rising with the 10-year yield rising from the recent level of 3.9% to 4.2% triggering capital outflows,” V K Vijayakumar, chief investment strategist at Geojit Financial Services, said, adding, “Also, since the valuations in India are high, FPIs used the excuse of less-than-expected results from HDFC Bank to press massive sales too.”
In contrast, foreign investors are bullish on the debt market and injected Rs 15,647 crore in the debt market during the period under review, data with the depositories showed.According to the data, foreign portfolio investors (FPIs) made a net withdrawal of Rs 13,047 crore in Indian equities this month (till Jan 19). They pulled out over Rs 24,000 crore from equities during Jan 17-19. Before this, FPIs made a net investment of Rs 66,134 crore in Dec.
“The US bond yield started rising with the 10-year yield rising from the recent level of 3.9% to 4.2% triggering capital outflows,” V K Vijayakumar, chief investment strategist at Geojit Financial Services, said, adding, “Also, since the valuations in India are high, FPIs used the excuse of less-than-expected results from HDFC Bank to press massive sales too.”