FPI G-Sec outflows nearly halve to Rs 5,400 crore in October
Foreign portfolio investors reduced their selling of Indian government securities and equities in October compared to September. Despite this, high oil prices and global yields pose challenges for sustained portfolio inflows. Economists caution that the slowdown may not indicate a definitive change in foreign investment trends. Political dynamics in other emerging markets might influence foreign…
Foreign portfolio investors (FPIs) reduced the sale of Indian government securities by nearly half in October, with outflows dropping to ₹5,400 crore from the previous month's ₹6,900 crore, according to data from Clearing Corporation of India (CCIL). The decline in foreign selling of Indian assets was accompanied by a slight slowdown in equity sales.
While high oil prices and global yield levels remain a concern, economists caution against interpreting the foreign investment slowdown as a definitive shift in the cycle. Despite the reduction in outflows, the scale of these withdrawals continues to be significant, with Dhiraj Nim, an economist at ANZ Bank, noting that they are still large enough to impact market dynamics.
Some investors are viewing India as an "anti-AI" trade, driven by lower AI-linked investments and more favorable global yield conditions. Nonetheless, political developments in other emerging markets may provide India with a more favorable environment for attracting foreign capital.
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