NEW DELHI: The exodus of Foreign Portfolio Investors (FPIs) from the Indian equity markets continues unabated, as they have withdrawn Rs 64,156 crore ($7.44 billion) so far this month, driven by the depreciation of the rupee, a rise in US bond yields, and expectations of a tepid earnings season.
This comes after an investment of Rs 15,446 crore in Dec, according to data from depositories. The shift in sentiment reflects a mix of global and domestic headwinds. “The continued depreciation of the Indian rupee is exerting significant pressure on foreign investors, leading them to pull money out of the Indian equity markets,” said Himanshu Srivastava, Associate Director – manager research, Morningstar Investment Advisers India.
Additionally, the high valuation of Indian equities -despite recent corrections, the expectation of a subdued earnings season, and macroeconomic challenges-are making investors cautious, he added. Moreover, the…
