FPIs continue selloff with Rs 22k crore withdrawal in November from

Foreign Portfolio Investors Remain Net Sellers in India, Withdrawing a Total of Rs 22,000 Crore in November

Persistent FPI Outflows Put Pressure on Indian Rupee

Foreign Portfolio Investors (FPIs) have continued their selling spree in Indian markets for the fifth consecutive month. In November 2022, FPIs withdrew a net amount of Rs 22,000 crore from the Indian equity and debt markets. This marks a significant increase from the Rs 12,000 crore withdrawn in October.

Factors Contributing to FPI Sell-Off

There are several factors that have contributed to this persistent selling by FPIs: - Global economic uncertainty due to rising inflation and recession concerns - Fluctuations in the value of the Indian rupee against major currencies - Increasing interest rates in India - Attractive valuations in developed markets compared to India

Impact on Indian Markets

The continuous outflow of FPI funds has put pressure on the Indian rupee, leading to its depreciation against the US dollar. In addition, domestic institutional investors have also been selling, further weighing on the markets.

Outlook for FPI Flows

Analysts expect FPI flows to remain volatile in the coming months. Global economic conditions and the trajectory of the Indian rupee will continue to influence their investment decisions.

Government Measures to Address FPI Flows

The Indian government has taken several measures to address the issue of FPI outflows, including: - Stabilizing the rupee through RBI intervention - Offering incentives to attract FPI inflows - Easing investment regulations

Conclusion

The recent FPI withdrawals have had a negative impact on the Indian markets and the rupee. However, the government is taking steps to stabilize the situation and attract FPI inflows. The outlook for FPI flows in the coming months remains uncertain, but analysts expect volatility to continue.