Foreign flows into Indian equities to take a breather, suggest analysts

Till September 15, 2023, FPIs have withdrawn Rs 6,027 crore from the Indian equity markets, taking their net investment in 2023 in Indian stocks to Rs 1.31 trillion

Foreign flows into Indian equities are expected to pause in the short to medium term, say analysts. The outlook is influenced by multiple factors, including rising oil prices, actions from global central banks, climbing bond yields, and the dollar index gaining prominence.
 

“Valuations appear rich with the markets at record highs. Foreign investors are likely to hit the ‘sell’ button in the coming days. With high bond yields in the US (the 10-year is at 4.28 per cent) and the dollar index above 105, foreign institutional investors (FIIs) are likely to sell more. Even though they (FIIs) have been sellers in