Foreign portfolio investors (REITs) continue to desert Indian equity markets and have so far withdrawn more than Rs 4,000 crore in July amid a steady appreciation of the dollar and rising interest rates in the states -United.
However, in recent weeks foreign portfolio investors have been selling at a slower pace.
“Oil prices surging above the USD 100 per barrel level and thinning refining margins in the markets have contributed to an improvement in market sentiment. further strengthened the uptrend,” TradeSmart Chairman Vijay Singhania said.
However, according to Himanshu Srivastava, Associate Director – Manager Research, Morningstar India, the slowdown in net withdrawals by REITs does not indicate a change in trend as the underlying factors have not improved much.
For the past nine months, REITs have been in the sales phase. He said: “There will also be a prospect of central banks slowing down planned rate hikes, which will again put risky assets back into the equation.” If “the story of high inflation takes a back seat,” he said.
Custodian data shows that between July 1 and July 8, REITs withdrew a net total of Rs 4,096 crore from the Indian stock market. However, on July 6, REITs bought shares worth more than Rs 2,100 crore for the first time in several weeks.
REITs sold Indian stocks for $6.44 billion in June
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