Foreign portfolio investors (FPIs) have pulled out ₹17,696 crore from the Indian markets in December due to Omicron uncertainty, and expectations of faster tapering by the US Federal Reserve. If the situation worsens, the investors might further redeem investments from turmoil-prone markets like India.
“There continue to be uncertainties on the global as well as domestic fronts. Also, the economic growth has also been relatively slow, and India’s earnings have not grown much,” Himanshu Srivastava, Associate Director – Manager Research, Morningstar India said to PTI. High-quality banking stocks have been made attractive from the valuation perspective due to sustained FPI.
According to PTI, Shrikant Chouhan, Head – Equity Research (Retail), Kotak Securities said South Korea, the Philippines, Taiwan, Thailand, and Indonesia, witnessed inflows of USD 1,870 million, USD 1,707 million, USD 297 million, USD 94 million, and USD 57 million, respectively. “FPI flows are expected to remain volatile given key events such as upcoming state elections and monetary tightening by developed countries,” he added.