- Foreign Portfolio Investors (FPIs) withdrew over Rs 3,400 crore from the Indian equity markets in the first three trading sessions of November due to rising interest rates and geopolitical tensions in the Middle East.
- FPIs had previously been buying Indian equities for six consecutive months from March to August, bringing in Rs 1.74 trillion during that period.
- The selling trend by FPIs is expected to reverse following the US Federal Reserve’s dovish stance on interest rates.
- Geopolitical tensions, particularly the conflict between Israel and Hamas, contributed to FPIs’ selling spree in Indian equities.
- In contrast, the Indian debt market saw increased interest, with FPIs allocating funds to Indian debt as a tactical move while awaiting more favorable conditions for equity investments.