FIIs Sell $1.6 Billion in Indian Equities in September, Highest Since January
1. Foreign institutional investors (FIIs) have sold approximately $1.6 billion in Indian equities in September, marking the highest monthly outflow since January 2023.
2. Elevated valuations in the Indian market and negative global cues have driven this trend, despite foreign investors buying $17 billion worth of shares since April.
3. Global market pressures, including concerns over global interest rate hikes, rising US treasury yields, and higher oil prices, have contributed to this selling trend.
4. Rising costs, especially in sectors like automobiles, construction materials, and commodity chemicals, have raised concerns about profitability.
5. Analysts maintain a positive long-term outlook for India, with optimism driven by India's inclusion in JPMorgan's bond index next year, attracting more foreign investment in the bond market.
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