August 2, 2021
Economy

FPI outflows: FPI outflows gather pace as rising dollar, oil add to worries

Mumbai: Overseas fund managers’ appetite for Indian equities has dimmed of late as a strengthening , rising oil prices and stretched share valuations have made them wary about near-term prospects. Foreign Portfolio Investors have been sellers in nine out of the 11 previous trading sessions since June 16. Their net outflow in this period was only over Rs 250 crore but that was on account of bulk deal inflows into select stocks on two days. But for these purchases, the FPI sales figures would have been much higher.

“A weakness in the US dollar rate against the rupee could be reflected in changing risk attitudes of investors,” said Mark Mobius, veteran emerging markets investor and founder of Mobius Capital Partners.

The US dollar index has firmed up since June 16, when the US Federal Reserve unexpectedly signalled an interest rate increase could happen as early as 2023. The…

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