After four straight 75-basis point hikes earlier in 2022, the US Federal Reserve raised its overnight borrowing rate by another 50 basis points in December
Further evidence of economic resilience and animal spirits, according to Wood, is continuing strong goods and services tax (GST) revenues and buoyant retail sales
However, analysts do caution against intermittent phases of withdrawals by FIIs given macro-economic developments across major world economies
'Now valuations have become more reasonable and trade at long-term averages. More importantly, there are palpable signs of peak inflation behind us'
The rupee losses on Friday were, however, limited by dollar sales by exporters, who felt that the domestic unit may not fall much further, given the sharp depreciation seen this week
Higher US interest rates, upside risks to India's current account deficit, brought about by higher oil prices, have caused the rupee to depreciate 6% vs $ so far in the calendar year
Investors are now looking toward potential triggers that may set the likely trajectory for equity markets in the second half of 2022.
Among sectors, the largest decline was seen in metal & information technology (IT) stocks, while relative outperformance was seen in auto counters
Foreign institutional investors remained net sellers in the capital market on Monday as they offloaded shares worth Rs 2,701.21 crore
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
Analysts believe that the persistent FII selloff, fear of aggressive rate hikes by the US Federal Reserve (US Fed) and weaker rupee was dampening investors' sentiment.
Over past decade, strong retail flows have coincided with declining / low deposit rates, said analysts at Jefferies, who expect the deposit rates to go above the 7 per cent level with a lag
Given the multiple headwinds, BofA Securities expects markets to be sideways the near-term given inflation impacting volume growth and margins across several sectors
Global growth optimism, according to the survey findings, was at an all-time low, with recession fears surging in the world's investment community.
Foreign portfolio investors exited India in droves and have sold stocks since October 2021 amid fears of an earlier and faster-than-expected rate hike by the US Federal Reserve (US Fed)
FIIs have been on a selling spree across most emerging markets, including India. What's making them nervous? Will the trend reverse? Find out how FIIs are viewing India as an investment destination
FIIs have been on a selling spree across most EMs, including India where they have sold over $11 billion worth of equities since October 2021 when they started to unwind their position here
The recent hawkish narrative from key central banks in the developed economies along with uncertainty with respect to Omicron has resulted in $ 3.7 billion portfolio outflow from the Indian markets
In across the board selling by the investors, the benchmark indices tumbled for a third day while volatility shot up ahead of the US Federal Reserve outcome later today and Thursday's F&O expiry
So far this year, the domestic equity markets have seen foreign inflows of $3.5 billion, even as EMs are seeing the worst sell-off in four months