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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

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Investors (Photo credit: Kamlesh Pednekar)

Puneet Wadhwa New Delhi
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. 

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“Household asset allocation decisions towards equities have a high dependence