UBS expects retail flows into equity markets to slow amid rising rates

Meanwhile, the $23 billion net selling by FIIs (equity) in the Indian market year-to-date (YTD), is, when adjusted for FII AUM, the most intense in over a decade-surpassed only by the GFC, UBS said

Retail investor flows, along with domestic institutional money, has been the lifeline of Indian equity markets over the past few months at a time when foreign investors have deserted emerging markets (EMs) in the backdrop of rising inflation and a concerted central bank action to tighten the monetary policy. In a recent note, UBS said that it expects household flows into equities to slow as they soften with the reopening of the economy and avenues for consumption. 

“Household asset allocation decisions towards equities have a high dependence