Adopting a cautious attitude, foreign investors have attracted more than 4,500 crore rs from the Indian equity market last week about fears of an increase in aggressive interest rates by the US Federal Reserve. This came after a clean investment of Rs 7,707 Crore by foreign portfolio investors (FPI) for 1-8 April as a correction in the market providing good purchasing opportunities, the data shown.

Before that, FPI remained a net seller for six months to 2022, interesting a large number of Rs 1.48 lakh crore from equity. This is mostly behind anticipation of an increase in interest rates by the US Federal Reserve and because of the worsening geopolitical environment after the Russian invasion to Ukraine.

Sonam Srivastava, founder at Wright Research, an investment advisor Registered Sebi, said, “We hope FPI to return to India in a great way when the Ukrainian crisis makes it easy for our assessment to be very competitive.” According to data depositor, FPI has issued a net number of 4,518 crore from India’s equity during the holidays shorted 11-13 April.

Before that, FPI remained a net seller for six months to 2022, interesting a large number of Rs 1.48 lakh crore from equity. This is mostly behind anticipation of an increase in interest rates by the US Federal Reserve and because of the worsening geopolitical environment after the Russian invasion to Ukraine.

Sonam Srivastava, founder at Wright Research, an investment advisor Registered Sebi, said, “We hope FPI to return to India in a great way when the Ukrainian crisis makes it easy for our assessment to be very competitive.” According to data depositor, FPI has issued a net number of 4,518 crore from India’s equity during the holidays shorted 11-13 April.

The market was closed on April 14 and April 15 because of Ambedkar Jayanti and Friday Agung, respectively. During the holiday-holiday week, FPI changed clean sellers about the fear of an increase in aggressive interest rates by the US Fed, which again haunted the market. This can encourage investors to adopt a cautious attitude towards their investment in developing country markets such as India, until greater clarity arise, Himanshu Srivastava, research director-manager, Morningstar India, said.

Apart from equity, FPI attracted the Clean RS 415 Crore from the debt market during the period reviewed, after instilling a net number of Rs 1,403 Crore in the previous week. “Sales by FPI are in line with global routes in equity markets caused by concerns about the hiking levels fed. In addition, the inflation rate for India coming out last week was above expectations, and they increasingly dampened sentiments. The RBI also looks shifting his attitude to The direction of tightening, which can emphasize the equity market, “said Srivastava Wright Research.

Manoj Trivedi, one of the founders of Jama Wealth, said that ongoing sales were not due to special Indian factors. It was more than the desire to move to a safer havens, given the variety of uncertainty such as the ongoing war, an increase in domestic interest rates (US) and a decrease in anticipated dollar refund, because the possibility of falling in the rupee value. Given the global landscape that changes rapidly, foreign flows to Indian equity can shift by means of how the underlying scenario changes, said Srivastava Morningstar India.

Last month US Fed Hiked prices, for the first time since 2018, with a quarter percentage point, so that finally ending the monetary policy of a very easy pandemic era and showed a series of interest rate increases this year. The war between Russia and Ukraine is still ongoing. Also, there is uncertainty about the next Fed US move.