Foreign portfolio investors have remained sellers in Indian equities during September. Earlier in the month, FPIs had withdrawn more than Rs.20,000 crore, with higher US rates, rising Treasury yields and elevated crude prices identified among the factors behind the selling.
The latest weekly data show that FII selling remained a significant market factor, while domestic institutional investors continued to provide buying support. The divergence between foreign and domestic flows remains an important feature of the Indian equity market as global risks remain elevated.
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