“A major trend in FPI activity this month is that FPIs have been turning sellers into debt after sustained buying for several months. From April to 20, FPIs have sold debt worth Rs 12,885 crore This is again a consequence of rising US bond yields and concern over rupee depreciation,” said Dr VK Vijayakumar of Geojit Financial Services.
Rising U.S. Treasury yields and the rupee’s fall to historic lows led foreign investors to unwind some positions, selling nearly $1.3 billion worth of government bonds in April.
Indian benchmark 10-year bond yields ended the week up 5 basis points (bps), compared to a 6 bps rise last week. This marks the third straight rise in yields as investors remain concerned about escalating tensions in the Middle East and the timing of Fed rate cuts.
The Indian rupee recorded a second consecutive weekly decline, falling around 0.1% to 83.4700 against the US dollar.
In the Indian stock market too, higher-than-expected US inflation and the resulting surge in bond yields (with the US 10-year rate topping 4.6%) led to heavy selling in the cash market. “Now, the total FPI flow for April has fallen to Rs 5,639 crore. It was the FPI investment through the primary market of Rs 22,092 crore that helped the total equity flows reach Rs 5,639 crore. FPIs sold shares worth Rs 16,452 crore through stock exchanges. This kind of big sell-off happens every time US bond yields rise beyond expectations,” Vijayakumar said. Read also | 39 Small-Cap Stocks Rise By Double Digits This Week
Market data shows that REITs have been big sellers in the IT sector ahead of the poor fourth-quarter results. They also sold FMCG and consumer durable goods, while buying stocks in sectors such as automobiles, capital goods, telecommunications, financial services and power.
On the derivatives front, foreign investors’ long exposure to index futures stands at 35%, while the put-call ratio stands at 1.03, suggesting a bullish bias.
Analysts expect volatility to also remain high in the coming week, citing weak global signals and the ongoing earnings season.
(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
“A major trend in FPI activity this month is that FPIs have been turning sellers into debt after sustained buying for several months. From April to 20, FPIs have sold debt worth Rs 12,885 crore This is again a consequence of rising US bond yields and concern over rupee depreciation,” said Dr VK Vijayakumar of Geojit Financial Services.
Rising U.S. Treasury yields and the rupee’s fall to historic lows led foreign investors to unwind some positions, selling nearly $1.3 billion worth of government bonds in April.
Indian benchmark 10-year bond yields ended the week up 5 basis points (bps), compared to a 6 bps rise last week. This marks the third straight rise in yields as investors remain concerned about escalating tensions in the Middle East and the timing of Fed rate cuts.
The Indian rupee recorded a second consecutive weekly decline, falling around 0.1% to 83.4700 against the US dollar.
In the Indian stock market too, higher-than-expected US inflation and the resulting surge in bond yields (with the US 10-year rate topping 4.6%) led to heavy selling in the cash market. “Now, the total FPI flow for April has fallen to Rs 5,639 crore. It was the FPI investment through the primary market of Rs 22,092 crore that helped the total equity flows reach Rs 5,639 crore. FPIs sold shares worth Rs 16,452 crore through stock exchanges. This kind of big sell-off happens every time US bond yields rise beyond expectations,” Vijayakumar said. Read also | 39 Small-Cap Stocks Rise By Double Digits This Week
Market data shows that REITs have been big sellers in the IT sector ahead of the poor fourth-quarter results. They also sold FMCG and consumer durable goods, while buying stocks in sectors such as automobiles, capital goods, telecommunications, financial services and power.
On the derivatives front, foreign investors’ long exposure to index futures stands at 35%, while the put-call ratio stands at 1.03, suggesting a bullish bias.
Analysts expect volatility to also remain high in the coming week, citing weak global signals and the ongoing earnings season.
(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)