Foreign portfolio investors (FPIs) have remained net sellers, offloading ₹12,146 crore worth of Indian equities amid surging US bond yields and geopolitical tensions. This marks a shift from a three-month trend of buying. The Middle East's heightened geopolitical tensions and indications of further US rate hikes may drive additional FPI outflows from emerging markets, including India.
Despite various challenges, the Indian market displays resilience, potentially discouraging heavy FPI selling in the near term. Additionally, FPIs are increasingly interested in the Indian debt market due to global uncertainties and the stable state of the Indian rupee. The recent inclusion of India in the JP Morgan Global Bond Index is a contributing factor. Though FPI selling persists, it is not extensive, suggesting that capital outflows could reverse when market conditions shift