The domestic currency closed at 82.18 per US dollar as against 81.93 per dollar on Wednesday
Weak US consumer data and hawkish comments from the Fed's policymakers hammered investor risk appetite
FPI outflows, likely RBI dollar purchases weigh on domestic currency
In a highly volatile trade, equity benchmarks ended on a flat note on Wednesday amid unabated foreign fund outflows and a weak trend in index heavyweight Reliance Industries. Continuing its previous day decline, the 30-share BSE Sensex dipped 9.98 points or 0.02 per cent to settle at 60,105.50. During the day, it declined 309.7 points or 0.51 per cent to 59,805.78. The broader NSE Nifty skidded 18.45 points or 0.10 per cent to end at 17,895.70. From the Sensex pack, Bharti Airtel, Hindustan Unilever, Titan, Reliance Industries, Nestle, IndusInd Bank, Bajaj Finserv and NTPC were the major laggards. Sun Pharma, UltraTech Cement, Tata Motors, Larsen & Toubro, Tata Consultancy Services, HDFC Bank and Tata Motors were among the winners. "The biggest drag on the market in the near-term is the sustained selling by FIIs for 13 continuous sessions, which has taken the cumulative cash market selling to Rs 16,587 crore," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial .
After three consecutive years of infusing huge funds, foreign portfolio investors retreated from the Indian equity markets in a big way in 2022 with the highest-ever yearly net outflow of nearly Rs 1.21 lakh crore. The huge outflow, which surpasses by a big margin the previous record of Rs 53,000 crore net withdrawal in 2008, came amid aggressive rate hikes by central banks globally but 2023 is expected to be better on positivity about overall macroeconomic trends in India, experts said. Apart from global monetary tightening, volatile crude, rising commodity prices along with Russia and Ukraine conflict led to an exodus of foreign money in 2022. Going ahead, the quantum of FPI outflows might not be as large as that seen in the first half of 2022 as India's growth is relatively promising compared to other developed and emerging economies, said Manish Jeloka, Co-head of Products and Solutions, Sanctum Wealth. Sanjiv Bajaj, Joint Chairman and MD of Bajaj Capital, said that FPI flows i
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Indian currency at 1-month high on FPI flows, weak dollar
The rupee settled at 82.44 per dollar on Friday versus 82.89 on Thursday
If not for inflows from India-dedicated funds, the FPI outflow tally in September would have crossed $2 billion.
FPIs offloaded nearly Rs 2 trillion ($265 billion) in Indian equities during Samvat 2078, data show.
The latest reading is well below this year's average of 20.7. Moreover, Monday's 8.8 per cent advance is only the 10th largest seen this year
As inflationary pressures unbind, corporate earnings growth will draw level, says Vinit Sambre, head-equities, DSP Investment Managers
Zee Entertainment Enterprises (ZEEL) has the biggest decline in foreign portfolio investor (FPI) holding among BSE 200 companies
There has been an exodus of foreign funds from the Indian equity market over the last nine months
The foremost reason for the currency's fall is the money being pulled out from the Indian economy by the FPIs and FIIs. In the last six months, FPIs have pulled out Rs 2.32 trillion
In all, funds tracked by EPFR saw net outflows of $1.2 billion, accounting for nearly a fourth of $5.2 billion outflows by FPIs in May
India's forex reserves, at $596 billion in the week ended June 10, equivalent to less than 10 months of imports projected for 2022-23
Chris Wood believes the best way to play Indian markets is the upswing in the Indian property/real estate sector despite the rate hikes by the Reserve Bank of India (RBI)
Outflows in just seven years since FY98, the first one seen post the Asian Financial crisis
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