InvestorQ : How were the FII flows into India in the month of October so far?
vidhya Laxmi made post

How were the FII flows into India in the month of October so far?

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Rashi Mehra answered.
2 months ago
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Foreign portfolio investors or FPIs turned net sellers in the first two weeks of October 2021. Interestingly, while they were still marginal buyers in equities, they sold a tad aggressively in bonds due to fears of a US taper after the Fed gave a rather hawkish note in its recent Fed minutes. The Evergrande crisis also threatens to spill over and that is also making the global bond investors wary of EMs and are gravitating towards safe havens.

This reversal of trend of August and September can be attributed to the weakness of the rupee too, which has now weakened close to Rs.75.40/$. The FPIs had pulled out Rs.1,698 crore in October, predominantly from the debt markets due to macro concerns. However, this is much smaller compared to the inflows in August and September, which were fairly robust. Going ahead, Brent prices could be a driving factor for FPI flows.

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