Mumbai, September 13 (IANS). So far this month (September 1-12), Rs 14,474 crore has been withdrawn from the equity market by foreign portfolio investors (FPIs). Earlier, positive inflows were recorded in July and August.
At the same time, FPI investment in the primary market (IPO) has so far remained positive at Rs 1,336 crore, due to which the total FPI investment in the primary market this year has increased to Rs 47,183 crore.
Meanwhile, the Indian equity market remained under pressure throughout the week and Nifty 50 declined for the fifth consecutive week.
Crude oil prices rose due to rising tensions in the Middle East and concerns over inflation, global interest rates and economic growth. Due to this, there was massive selling in the market and major sectors closed with a decline during the week.
Market experts say that crude oil prices have emerged as a major challenge for domestic equities.
Foreign institutional investors remained cautious and their continued selling is becoming a major hindrance for domestic equities.
In contrast, domestic institutional investors (DIIs) made net purchases of Rs 6,419.46 crore last week, which helped offset the impact of overseas selling and prevent further losses in the domestic equity market.
Going forward, FPI investments will be largely influenced by the Iran-US tensions and the resulting impact on crude oil prices.
Experts say that high crude oil prices and rising inflation mean that monetary policy will be strict, which will further increase bond yields.
Indian equity markets are likely to remain volatile in the coming week due to global macro-economic and geo-political risks. Crude oil prices, developments in the Middle East and changing expectations regarding US monetary policy will be the main factors determining the market mood.
–IANS
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