FII flow into Indian equities may pick up in later part of 2022: Analysts

FIIs have been on a selling spree across most EMs, including India where they have sold over $11 billion worth of equities since October 2021 when they started to unwind their position here

Foreign institutional investors (FIIs) have been on a selling spree across most emerging markets, including India where they have sold over $7 billion worth of equities thus far in 2022 – and over $11 billion since October 2021 when they started to unwind positions in India. Analysts say FIIs may choose to remain on the sidelines for now, and come back in a big way in the later part of 2022 when the markets face less headwinds.

The nervousness right now, analysts said, is more on account of the likely policy actions of global central banks, especially the US