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<ul><li>Foreign institutional investors have pulled out nearly $7 billion from the Indian markets this year.</li><li>FIIs have been net buyers in only one month this financial year – September.</li><li>Nearly $13 billion worth of shares have been sold by FIIs so far, as opposed to inflows worth over $13 billion in the period last year.</li></ul>Foreign institutional investors (FIIs) have offloaded nearly $7 billion worth of shares in the last two months and since the beginning of the financial year, FIIs have sold nearly $13 billion worth of shares. During the financial year, only September has witnessed net buying from FIIs, that too only to the extent of $62 million. This comes at a time when the Nifty 50 index has gained nearly 20% since April. “Part of the reason FIIs are selling is because valuations are not cheap and the inflation risk is real in India while the Reserve Bank of India, which historically was one of the more vigilant central banks, right now seems to be more on the dovish side," said Arvind Sanger, managing partner, Geosphere Capital Management to <a href="https://economictimes.indiatimes.com/markets/expert-view/why-have-fiis-turned-big-sellers-in-the-indian-market-arvind-sanger-answers/articleshow/87904160.cms">Economic Times</a>. <table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#000000;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Month (2021) </td><td style="border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#000000;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Amount ($ billion) </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">April </td><td style="border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">-1.70 </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">May </td><td style="border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">-0.81 </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">June </td><td style="border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">-0.003 </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">July </td><td style="border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">-3.10 </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">August </td><td style="border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">-0.34 </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">September </td><td style="border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">0.06 </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">October </td><td style="border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">-3.42 </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">November </td><td style="border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">-3.39 </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Total </td><td style="border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">-12.70 </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table> Source: NSE, as on November 26, 2021 During the financial year, the last two months have recorded nearly $7 billion worth of selling and November is on track to be the month with the highest selling. <div type="image" title="FIIs - 2020-21 vs 2021-22" msid="87927349" hostid="261" caption="&amp;lt;p&amp;gt;FII activity compared to last financial year.&amp;lt;/p&amp;gt;"></div> Some of the reasons for the pull out by FIIs include concerns around COVID-19, the inflation risk and US Federal Reserve’s plans to reduce the stimulus. If we look at some of the companies that have high <keyword id="46756" type="General" weightage="20" keywordseo="fii" source="Orion">FII</keyword> holdings, there has been a substantial withdrawal in the financial year, even without looking at the last two months. The following data does not factor in the heavy selling that has taken place in October and November. <table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;background-color:#000000;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Company </td><td style="border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;background-color:#000000;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FII holding as on March 31, 2021 </td><td style="border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;background-color:#000000;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FII holding as on September 31, 2021 </td><td style="border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;background-color:#000000;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Decline </td></tr><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Shriram Transport Finance Corporations </td><td style="border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">61% </td><td style="border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">53.70% </td><td style="border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-7.30% </td></tr><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">ZEE Entertainment Enterprises Ltd </td><td style="border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">64.20% </td><td style="border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">57.20% </td><td style="border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-7.00% </td></tr><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Fortis Healthcare </td><td style="border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">34.40% </td><td style="border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">29.30% </td><td style="border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-5.10% </td></tr><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Manappuram Finance </td><td style="border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">38.60% </td><td style="border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">34.90% </td><td style="border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-3.70% </td></tr><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Apollo Hospitals </td><td style="border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">54.50% </td><td style="border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">51.50% </td><td style="border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-3.00% </td></tr><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Redington India </td><td style="border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">42% </td><td style="border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">39% </td><td style="border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-3.00% </td></tr></tbody><tbody></tbody></table> Note: Data till September 2021 Morgan Stanley last month <a href="https://www.cnbctv18.com/economy/morgan-stanley-downgrades-india-to-equal-weight-from-overweight-citing-expensive-valuations-11263672.htm">downgraded</a> Indian equities to equal-weight from overweight citing expensive valuations. "We move tactically equal weight on India equities after strong relative gains - we expect a structural multi-year earnings recovery, but at 24 times forward price to earnings, we look for some consolidation ahead of Fed tapering, an RBI (rate) hike in February and higher energy costs," the investment banking company said. Similarly, Goldman Sachs downgraded the Indian market from overweight, stating that the recovery has already been priced in. “While we expect strong cyclical and profit recovery next year and remain medium-term constructive amid increasing digitalisation in the index, we think the recovery is well priced at current peak valuations. We, thus, take profits on our India overweight and lower it to market weight within our regional allocations,” it <a href="https://economictimes.indiatimes.com/markets/stocks/news/goldman-sachs-downgrades-india-equities-says-stocks-appear-well-priced-for-now/articleshow/87660109.cms">said</a>. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/global-investment-banks-are-telling-their-clients-to-take-profits-from-india/articleshow/87667322.cms">Small investors ahoy! Global investment banks are telling their clients to take profits from India</a> <a href="https://www.businessinsider.in/stock-market/markets/news/tata-motors-maruti-and-hdfc-are-among-the-top-losers-as-fear-of-the-new-covid-variant/articleshow/87923451.cms">Biggies like Tata Motors, Maruti, and HDFC are among top losers as fear of new COVID variant takes the wind out of Indian stocks</a> <a href="https://www.businessinsider.in/stock-market/news/pvr-inox-mainland-china-barbeque-nations-share-price-falls-due-to-new-covid-19-variant/articleshow/87925164.cms">Shares of PVR, INOX, Burger King, Barbeque Nation tumble as investors panic over the new COVID-19 variant</a>

Foreign investors have pulled out nearly $7 billion in the last two months, and over $12 billion since April this year

Even though <keyword id="3658" type="General" weightage="50" keywordseo="india" source="Orion">India</keyword>'s inflation has eased, it still remained above the <keyword id="6354335" type="General" weightage="50" keywordseo="reserve-bank-of-india" source="Orion">Reserve Bank of India</keyword>'s (<keyword id="30067" type="General" weightage="100" keywordseo="rbi" source="Orion">RBI</keyword>) tolerance band and hence it warrants appropriate policy responses to anchor expectations going forward. "Easing of supply chain pressures and the recent ebbing of commodity prices are providing some breather from record <keyword id="101998" type="General" weightage="20" keywordseo="high-inflation" source="Orion">high inflation</keyword>," the RBI said in its monthly bulletin. Incidence of unseasonal and excessive rainfall, if any, can impact food prices, especially vegetable prices. Greater transmission of input cost pressures to selling prices across manufacturing and services sectors may also create fresh price pressures. Moreover, persistently elevated cost of living conditions could translate to higher wages and further price increases, especially if pricing power of firms strengthen. Taking into account these factors, and on the assumption of a normal monsoon in 2022 and average crude oil price (Indian basket) of $105 per barrel, inflation is projected at 6.7 per cent in 2022-23, with Q2 at 7.1 per cent; Q3 at 6.4 per cent; and Q4 at 5.8 per cent, with risks evenly balanced. CPI inflation for Q1 2023-24 is projected at 5 per cent, the RBI said. In India supply conditions are improving, with the recent monsoon pick-up, strong momentum in manufacturing and a rebound in services. Going forward, the onset of festival season should boost consumer demand, including rural, also as sowing activity picks up. Robust central government capital outlays are supporting investment activity. India's retail inflation -- Consumer Price Index (CPI) -- eased to a five-month low of 6.71 per cent in July, down from 7.01 per cent in June. The CPI continued to remain above the RBI's upper tolerance band of 6 per cent for the seventh consecutive month. Meanwhile, the bulletin also stated that the consolidated balance sheet of the NBFC sector exhibited double digit growth in the quarter-ending December 2021. The profitability of the NBFC sector improved in Q3 2021-22 compared to the corresponding quarter in 2020-21. NBFCs continued to provide maximum credit to industrial sector followed by retail, services, and agriculture. The sectoral credit distribution remained largely unchanged in 2021-22 (up to end-December 2021) as compared to end-December 2020. All sectors witnessed high credit growth on account of base effect and resumption of economic activities. SEE ALSO : <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/rupee-expected-to-trade-at-around-79/-on-fii-inflows-easing-crude-prices-bob/articleshow/93651698.cms">Rupee expected to trade at around 79/$ on FII inflows, easing crude prices: BoB</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/mobile/realme-9i-5g-review/articleshow/93641337.cms">Realme 9i 5G Review - 5G Upgrade With Cosmetic Changes</a>

There is a breather from record high inflation, but still above tolerance band: RBI

Top stock picks for 2021 — Brokerages are betting big on Bharti Airtel, Tech M, HUL, Biocon, and Sun Pharma

Ever since Donald Trump won the 2024 US presidential elections, bitcoin has been surging, going up over 40% in the last two weeks. Recently, the cryptocurrency soared past $97,000, having risen 8.32% in just the last 7 days, and is currently trading at $96,906.09. The overall crypto market is also buoyant, with the crypto volume jumping 10.06% over the past 24 hours to touch $198.83 billion. The markets are enthused about Bitcoin's prospects going ahead, given that Trump has hinted towards establishing a dedicated role in the White House for deliberating crypto policies. Trump has been vocally pro-crypto and had promised, during his presidential campaign, to scale back <keyword id="24085738" type="General" weightage="20" keywordseo="crypto-regulations" source="keywords">crypto regulations</keyword> and fire SEC chair Gary Gensler, who had initiated a crackdown on digital assets in the US. The crypto lobby in the US has been advocating for crypto-friendly SECs and access to banks. In a bid to do so, crypto companies have pumped in over $119 million to support pro-crypto candidates. Says Edul Patel, co-founder and CEO of Mudrex, "Market sentiment grew stronger from Bloomberg's report of Trump’s plan to establish a dedicated White House role for crypto policy. The anticipation of faster regulatory clarity coupled with BlackRock’s Bitcoin ETF options projecting a $176k price target by 2026 has driven BTC’s price to the $95K milestone and beyond." The ongoing rally is not restricted to just bitcoin but also extended to Solana and XRP, which gained 10.85% and 59.02%, respectively, over the last 7 days. But does this mean that good times are coming for <keyword id="19991358" type="General" weightage="20" keywordseo="Indian-markets" source="keywords">Indian markets</keyword> as well? Apurva Sheth, Head of Market Perspectives &amp; Research, SAMCO Securities, notes that bitcoin is a proxy for risk-taking in the markets. Bitcoin moving up means the risk appetite of investors is rising. Conversely, if it falls, then investors prefer safety." Both Nifty and Sensex have lost over 5% each over the last month. FIIs (<keyword id="19932515" type="General" weightage="20" keywordseo="foreign-institutional-investors" source="keywords">foreign institutional investors</keyword>) have also been scrambling out of Indian markets, having withdrawn Rs 1,14,445.89 crores during October 2024 and offloading Rs 34,348.30 crore so far in November. During trade today, Nifty and Sensex remained in red, with Nifty down by 0.74% and Sensex down by 0.6%. DIIs (domestic institutional investors) have been trying to keep the market afloat in both October and November, pumping in Rs 31,636.77 crore in Indian markets in November so far. Last month, DIIs infused Rs 1,07,254.68 crore in the Indian markets. According to an NSE report, by the end of the previous quarter, FPIs holding in NSE-listed companies stood at 36.3%, despite the seventh consecutive quarterly decline. Previously, FIIs holding in listed companies had hit a record high of 39.9% in December 2021. In contrast, DIIs are increasingly making headway into the Indian markets. Active Domestic Mutual Funds (DMFs) have been increasing their investments in the NSE-listed companies. Their ownership in these companies has risen from 12.4% in December 2021 to 15.7% as of September 30, 2024. Banks and insurance companies have also expanded their market share. Their ownership in NSE-listed companies has grown from 8.8% three years ago to 11% as of pr quarter.

The Bitcoin rally does not seem to be stopping anytime soon! Does this spell good news for Indian markets?

The Indian mutual fund industry continued to register strong growth in fund inflows during May 2024, as monthly data released by the Association of Mutual Funds in India (AMFI) today showed. This was a record month for equity mutual funds, with the category’s inflows jumping up by a whopping 83% since April. The mutual fund industry’s AUM (net assets under management) stood at Rs 58.91 lakh crore, rising marginally from Rs 57.25 lakh crore in April 2024. With total inflows worth Rs 42,294.99 crore, debt mutual funds continued to receive more investor attention than their equity counterparts during the month, which saw inflows of around Rs 34,697 crore. Notably, this is the 39th consecutive month where <keyword id="19925781" type="General" weightage="100" keywordseo="equities" source="keywords">equities</keyword> have seen positive inflows. Hybrid funds also ended their month in green, garnering Rs 17,990 crore in May. <cmsannotation type="cmsannotation" annotationid="Expectations around election results behind the surge, say experts" comment="subhead" text="Expectations around election results behind the surge, say experts">Expectations around election results behind the surge, say experts</cmsannotation> Expectations around the continuation of a stable regime led by the ruling party BJP during the election month of May could have been the major driver behind the record inflows into the MFs. Venkat Chalasani, Chief Executive, AMFI, said "Political stability creates an environment conducive to sustainable economic growth, attracting investments and fostering long-term investments. Global growth is sustaining its momentum in 2024 and is likely to remain resilient, supported by a rebound in global trade. The overall outlook for Indian capital markets remains positive, supported by strong fundamentals, and favourable demographics. However, it remains to be seen how the lesser-than-expected seats for the Narendra Modi-led BJP have impacted the MF sector in the month of June. However, a continuation of the NDA regime is likely to have contributed to the improved market sentiments as evident with surging markets post the counting day, and could reflect into the MF activity as well. "Although coalition governments face challenges in consensus-building and decision-making, infrastructure and nation-first initiatives introduced earlier are likely to receive support from allies across the political spectrum. The forthcoming 100-day action plan and a comprehensive Union Budget will provide a clearer picture of the government's priorities for the Indian economy," says Gopal Kavalireddi, Vice President of Research at FYERS. <cmsannotation type="cmsannotation" annotationid="Equity inflows mark a record high" comment="subhead" text="Equity inflows mark a record high"><keyword id="421833" type="General" weightage="20" keywordseo="Equity-inflows" source="Orion">Equity inflows</keyword> mark a record high</cmsannotation> Equity inflows remained positive for the 39th consecutive month, starting from March 2021. Growth Equity fund inflows for the month of May was ₹ 34,697, pushing the total inflows into mutual funds to Rs.1.1 lakh crore for the month. A total of 9 schemes were launched last month in the category of open-ended schemes, raising a total of ₹ 10,140 crores, said AMFI. Kavalireddi says, “Despite potential high volatility from FII selling, general elections, GDP data, and other minor events in May, investors remained steadfast in their pursuit of returns on the back of the Indian growth narrative." In a clear indication of investors looking to diversify their investments, multi-cap funds garnered Rs 2,644.88 crore. Large-cap funds amassed Rs 663 crore, while mid-cap funds made Rs 2,605.70 crore. On the other hand, small-cap funds have seemingly begun gaining their lost sheen, managing to take in Rs 2,724.67 crores during the month. Flexi-cap funds led the troupe, with inflows worth Rs 3,155 crore. "Equity flows have been largely driven by expectations of the election outcome, coupled with some NFO (new fund offer) launches, which perhaps led to a much higher than expected quantum in the equity category. On the equity side, investors possibly wanted to position their portfolios in advance to avoid any kind of gap risk as election exit polls were coming out over the weekend, which could have led to a spike in equity allocations towards the end of the month," Anand Vardarajan, Head Business Head – Banking, Institutional Clients, Alternate Products and Product Strategy, Tata Asset Management. Amidst hybrid funds, the majority came from arbitrage funds, which saw inflows worth Rs 12,758.12 crores in May. Notably, index funds and other ETFs collectively raked in Rs. 15,180 crore. <cmsannotation type="cmsannotation" annotationid="SIPs going strong" comment="subhead" text="SIPs going strong"><keyword id="159805" type="General" weightage="20" keywordseo="SIPs" source="Orion">SIPs</keyword> going strong</cmsannotation> Systematic investment plan (SIP) contributions continued to breach their record highs on a month-on-month basis. SIP contributions rose marginally to an all-time high of Rs 20.90 crore last month, as opposed to Rs 20.37 crore in April. SIP accounts also jumped to their highest figure in May, standing at 8,75,89,485. During the month, around 49,74,400 new SIPs were registered. As per <keyword id="1029773" type="General" weightage="20" keywordseo="AMFI-data" source="Orion">AMFI data</keyword>, SIP plans accounted for 19% of the net flows during the month. In the debt category, liquid funds saw the most influx, worth Rs 25,873.38 crore. Sectoral or thematic funds amassed Rs 19,213.43 crore during the month, trumping inflows by small-cap funds, which stood at Rs 2,724.67 crore, by a significant margin. Inflows into thematic funds were largely bolstered by the NFO of HDFC Manufacturing Fund, which drew Rs. 9,563 crores. Although Himanshu Srivastava, Associate Director, Manager Research, Morningstar Investment Research India, has a word of caution for all those flocking to sectoral funds, “investors must be cautious while investing in such funds. They are cyclical, and hence investors should have the necessary skills or the right set of advice in place to track sector dynamics and time their entry and exit from these funds. These are high-risk return propositions, and hence investors must take a judicious call while investing in them.” <cmsannotation type="cmsannotation" annotationid="Gold continues to shine" comment="subhead" text="Gold continues to shine">Gold continues to shine</cmsannotation> The quantum of net flows in <keyword id="20050894" type="General" weightage="20" keywordseo="gold-ETFs" source="keywords">gold ETFs</keyword> saw a sharp uptick to Rs 827 crore in May 2024, from a net outflow of Rs 396 crore in April. Srivastava further notes that the enduring <keyword id="19950651" type="General" weightage="20" keywordseo="global-inflation" source="keywords">global inflation</keyword>, which remains above central banks' comfort levels, and the persistent uncertainty surrounding <keyword id="19962135" type="General" weightage="20" keywordseo="interest-rate-cuts" source="keywords">interest rate cuts</keyword> have bolstered gold's appeal as a haven and as a hedge against inflation, thereby attracting more investors. “Also, over the years, gold has gained prominence as an effective diversifier, prompting many investors to include gold ETFs in their portfolios. <keyword id="19910265" type="General" weightage="20" keywordseo="gold-prices" source="keywords">Gold prices</keyword> also saw some corrections in May, which spurred buying from investors. In INR terms, gold has done fairly well over the last year but dwarfs in comparison to how equities have fared. Given this backdrop, flows in the gold ETF category have been somewhat patchy relative to the equity asset class," he continued. Disclaimer: The content on this website is for informational purposes only and should not be construed as investment advice. We recommend readers consult certified, qualified and registered advisors for professional and personalised financial advice.

Election fever? Equities and SIP inflows mark record highs in May, per AMFI data

<keyword id="722345" type="General" weightage="80" keywordseo="nifty-bank" source="Orion">Nifty Bank</keyword>, which is comprised of the most liquid and large capitalised Indian banking stocks, is up 11.76 per cent so far this year due to robust earnings growth of banks, return of foreign investors in Indian equities since July and attractive valuations. Currently, the <keyword id="6354813" type="General" weightage="100" keywordseo="nifty" source="Orion">Nifty</keyword> Bank index is trading at 39,656.15, as compared to 35,481.70 on December 31, 2021. According to the data compiled by <keyword id="824141" type="General" weightage="50" keywordseo="geojit-financial-services" source="Orion">Geojit Financial Services</keyword> showed, the top three banks that have outperformed the index were Bank of Baroda with YTD returns of 47.90 per cent, Federal Bank with 21.20 per cent, and IndusInd Bank with 21.10 per cent. On Thursday, <keyword id="46013" type="General" weightage="50" keywordseo="kotak-mahindra-bank" source="Orion">Kotak Mahindra Bank</keyword>, Bandhan Bank, Federal Bank, <keyword id="6354731" type="General" weightage="50" keywordseo="state-bank-of-india" source="Orion">State Bank of India</keyword>, IndusInd Bank, HDFC Bank, AU Small Finance Bank, ICICI Bank, Axis Bank, PNB, <keyword id="6986952" type="General" weightage="50" keywordseo="idfc-first-bank" source="Orion">IDFC First Bank</keyword>, and Bank of Baroda were stocks in the Nifty Bank index. "The banking sector has demonstrated strong resilience so far this year, supported by multiple factors. 1. Strong quarterly earnings driven by robust credit growth, margin expansion, improved asset quality and lower provisioning; 2. FIIs return to buying mode due to favourable economic factors; 3. Attractive valuation. We believe that the rally is still in its early stages and that valuations have room to rise further, given improved fundamentals," said Vinod Nair, Head of Research at Geojit Financial Services. According to the ICICI Securities report, banks under their coverage in Q1 FY23 reported 16 per cent on-year and 2 per cent on-quarter growth in net interest income. Core operating profit grew 17 per cent on-year, while <keyword id="6374832" type="General" weightage="80" keywordseo="treasury" source="Orion">treasury</keyword> loss dragged operating profit lower by 13 per cent on-year and 18 per cent on-quarter. Subsiding credit cost and lower base supported 35 per cent on-year earnings growth. However, earnings of State Bank of India, HDFC Bank and Kotak Mahindra Bank lagged I-Sec expectations due to higher than anticipated treasury loss and elevated opex. G-sec yields surged 65 basis points since March to 7.5 per cent till June and corporate bond yields by 70 basis points. This created pressure on treasury profits for banks that dragged overall earnings growth. Having 25-60 per cent of investment portfolio in AFS/HTM with 1-2 years of modified duration led to a treasury knock. Banks with relatively higher investment in corporate bonds (credit substitute) witnessed above-expected hit. On an average, banks registered treasury loss equivalent to high single digit of revenues and 15 per cent of core operating profit. Banks' upbeat stance on growth was reflected in advance growth of 2-4 per cent on-quarter in Q1 FY23, otherwise a seasonally slow quarter. Growth was primarily led by retail and proportion of unsecured retail advances inched up. Sequential loan growth momentum was dragged by 2-wheeler segment and agri (in few banks). While, inflows of foreign investors in the Indian equities was Rs 21,252.60 so far from July 28. Foreign investors turned buyers since late July after remaining sellers in the equities for almost 9 months. Experts believe that foreign investors have returned to Indian market because India is preferred destination as country has best growth prospects among large economies of the world. FPIs have turned net buyers in autos, capital goods, FMCG, and Telecom. Due to this, the Sensex is now trading above 60,000 mark and Nifty over 17,900. Going forward, profitability of banks is expected to improve with a robust credit growth outlook and improving asset quality. Additionally, in the rising interest rate scenario, banks with a higher proportion of flexible loans will showcase margin expansion. "We expect that the mark-to-market impact of rising bond yields on treasury income will hurt banks, particularly PSUs in the short term, who have higher investments in bonds. We continue to recommend top private sector banks that are better poised to reap the benefits of economic recovery with stronger balance sheets and neat loan books. The sector is currently trading at its 5-year averages, which indicates significant room for expansion. However, the near-term trend will be dictated by the movements in FII activities," Nair added. SEE ALSO : <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/apps/news/zomatos-quick-commerce-app-blinkit-to-deliver-printouts-at-your-doorsteps-in-11-minutes/articleshow/93651814.cms">Zomato’s quick commerce app Blinkit to deliver printouts at your doorsteps in 11 Minutes</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/rupee-expected-to-trade-at-around-79/-on-fii-inflows-easing-crude-prices-bob/articleshow/93651698.cms">Rupee expected to trade at around 79/$ on FII inflows, easing crude prices: BoB</a>

Nifty Bank index up over 11% so far this year, BoB outperforms index

<ul><li>India has the ability to bring out its best in adversity.</li><li>The government’s ‘Make in India’ programme is showing results.</li><li>India is at 63 in terms of ‘ease of doing business’ as of 2021, a sharp movement from the 142nd place in 2014.</li><li>India’s forex reserves have also moved up over these seven years.</li></ul>Indian markets have witnessed persistent FPI selling since Oct 21. Higher oil prices are Rahu and Ketu in India’s kundli having adverse effects on GDP, Inflation and Current Account Deficit. Ukraine invasion and sanctions on Russia have pushed oil prices in triple digits adversely affecting India. Inflationary pressures are visible with the RBI revising inflation estimates upwards for FY23 by ~2 % in the last two policies to 6.7 %. FY23 inflation will be above the RBI’s upper target level. <div type="image" title="The troika of slowing growth, rising inflation and FPI selloff is creating concerns among both local and global investors." msid="92676486" hostid="261" caption="&amp;lt;p&amp;gt;The troika of slowing growth, rising inflation and FPI selloff is creating concerns among both local and global investors.&amp;lt;/p&amp;gt;"></div> Motivated campaign against Índia for its import of Russian oil is adding to investor concerns. In such an uncertain scenario what makes me bullish about Índia is its ability to bring out the best in adversity. We transitioned from importing milk and milk products; to become the largest producer of milk. We transitioned from being dependent on donation of food grains to exporting food grains. We transitioned from pledging gold to borrow FX loans to top 5 holders of FX reserves in the world. Adversity has always brought the best out of us. Does the current correction in equity markets, the selling by FIIs or deteriorating macro-economic metrics take away the progress that has been made in the last few years? No. It is, therefore, important that investors focus beyond these uncertainties which undoubtedly is going to be painful. Let’s discuss a few of these metrics. In 2014, India was the world’s tenth-largest economy. <div type="image" title="A series of reforms, including the introduction of the Goods and Services Tax or GST, has seen the country rise to be the world’s sixth-largest economy as of 2021" msid="92676560" hostid="261" caption="&amp;lt;p&amp;gt;A series of reforms, including the introduction of the Goods and Services Tax or GST, has seen the country rise to be the world&amp;#8217;s sixth-largest economy as of 2021&amp;lt;/p&amp;gt;"></div> With its share in global GDP rising by 23% to 3.2%. In FY22 we will overtake our former colonial occupier to be the fifth largest economy. A lot of this has also come due to India’s heft in production, with the government’s ‘Make in India’ programme showing results. From being the world’s fourth-largest producer of steel in 2014, India is second only to China as of 2021, which alone manufactures more than half of the total steel produced in the world. India was also the world’s second-largest producer of mobile phones as of 2021, a sharp improvement from being the world’s twelfth largest producer in 2014. Notwithstanding the recent slowdown in demand in the automobile space over the last two-three years, India is the fourth largest manufacturer of automobiles by volume in the world as of 2021. This is an improvement from it being the seventh largest producer in 2014. These improvements reflect in other parameters as well. <div type="image" title="India is at the 63th rank in terms of ‘ease of doing business’ as of 2021, a sharp up move from being at the 142nd place in 2014." msid="92595550" hostid="261" caption="&amp;lt;p&amp;gt;India is at the 63th rank in terms of &amp;#8216;ease of doing business&amp;#8217; as of 2021, a sharp up move from being at the 142nd place in 2014.&amp;lt;/p&amp;gt;"></div> Equity markets have reflected this buoyancy, supported by both domestic and foreign investors. India accounted for 6.7% of global FDI inflows in 2021, more than three times the 2.1% that it got in 2021. India’s forex reserves have also moved up over these seven years, while targeting inflation has helped it come down to moderate levels from high levels seen earlier. The country has seen an influx of capital through venture capital and private equity, which has also spurred growth in the start-up economy in the country. India recently got its 100th unicorn, a massive 25X rise from the four unicorns that it had in 2014. An impetus on creating and building infrastructure, especially in the roads, power, ports, airports and power segment has also helped India move from a state of being deficit in infrastructure to that of availability of infrastructure. India is leaving behind the physical way of doing things, opting to go with the digital ecosystem in a remarkable way, with the Unified Payments Interface a significant example of such changes. Another significant shift that the country has seen over these years is the change in mindset for business activities. The government has moved to a psyche of not being involved in the running of businesses, a refreshing change from the earlier practice of being in business.Improvements in tax compliance have also helped the country move sustainably to moderate fiscal deficit, from a high fiscal deficit earlier. Undoubtedly in the short term there are challenges for the Indian economy emanating from higher energy prices. In the long term Índia having moderate inflation, surplus FX reserves and fiscally prudent policies will be in a better position to reward investors. There are, of course, more facets to this growth story. As investors, it is important that you can look beyond the short-term volatility and understand whether these factors are actual roadblocks for the country’s growth story in the long term. To make the most of it, it is important to remain focused as well as disciplined. So dear readers, happy investing!

India’s FX reserves and fiscal policies will lead the India growth story

<ul><li>Twitter has rolled out various safety features that aims to safeguard its users against targeted attacks and trolls.</li><li>The social platform removes millions of spam accounts everyday and at times shortly after the creation.</li><li>Putting on the “Safety Mode" helps Twitter scan and automatically block interactions from "harmful" accounts for seven days.</li></ul>From memes and jokes to name-calling — celebrities, politicians, brands, activists and even journalists are targeted and trolled on a regular basis. Twitter deletes millions of such spam accounts on a regular basis. With rampant access to social media, the amount of social media trolling and the number of spam accounts are rapidly growing and, therefore, its is important for social media apps like Twitter to take definitive steps to curb it. Preetha Athrey, who is the director at global business marketing for APAC at Twitter tells Business Insider in an exclusive interview that the platform has been working on it constantly.“Our priority is to keep people on the platform safe and this is something we constantly do. We review a lot of content and a lot of reports that come to us,” Athrey said. Twitter has also rolled out various safety features which will safeguard its users against targeted attacks and trolls. “We constantly communicate about the new safety features to our users we have launched. 'Unmention’ to give people more control over their mentions. ‘Unmention’ lets you untag yourself from a conversation, so you can no longer be mentioned in replies. Additionally, people can also control who engages with the conversations they are starting,” Athrey said. Unmention feature was rolled out by the company in July this year and it allow the users to remove themselves from an unwanted conversation in which they don’t wish to be a part of. "Through Conversation Settings, people on the service can choose who can engage with and reply to their Tweets. In March 2021, we also extended Conversation Settings to our brand partners. Through our policies, products, and partnerships, we’re already seeing progress happen, and we’ll continue to invest in brand safety to make Twitter a safer place for all. We understand that ultimately, behind every Tweet is a breathing, thinking, and feeling individual who wrote it, and we are committed to our job to empower them, protect them, and encourage them so they can share that voice freely,” Athrey added. Another feature rolled by the social media app is Safety Mode. By turning on "Safety Mode" in settings, a user can have Twitter scan and it will automatically block interactions from "harmful" accounts for seven days. Accounts that are blocked with this feature will be unable to follow a user, see a user's tweets, or send direct message, albeit only temporarily. Generally, these trolls or negative hashtags are spread by people using fake accounts. And nonetheless, removing these accounts is a part of controlling trolls. Twitter removes one million spam accounts everyday. “We remove millions of spam accounts everyday during the day or shortly after the creation,” Athrey told Business Insider India. Earlier this month, the global executives of the social media platform also highlighted in a <a href="https://timesofindia.indiatimes.com/business/international-business/twitter-says-it-removes-1-million-spam-accounts-a-day/articleshow/92738262.cms">briefing</a> that the number of spam accounts represent below 5% of its active user base each quarter. The app also removes a lot of suspected accounts. “ We also block a lot of suspected spam accounts each week if they don’t pass human verification like captcha, phone or email address,” Athrey said. “We use technology and human review in concert and proactively tackle attempts on platform manipulations,” she further added. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/apps/news/indians-go-to-twitter-videos-for-news-updates-and-to-follow-celebrities-says-study/articleshow/93188261.cms">Indians go to Twitter videos for news, updates and to follow celebrities, says study</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/markets-trend-higher-as-fii-flows-reverse-and-top-companies-hit-52-week-high/articleshow/93202891.cms">Markets trend higher as FII flows reverse and top companies hit 52-week high</a>

We delete millions of spam accounts a day to control trolls, says Twitter

<ul><li><keyword id="30067" type="General" weightage="100" keywordseo="rbi" source="Orion">RBI</keyword> has used the post-pandemic era of quantitative easing to shore up its forex reserves, but it looks like the better days are over for now.</li><li>Over the last six months, India’s forex reserves have fallen by over $40 billion, with the RBI intervening to prop up the falling Rupee.</li><li>Boiling crude oil prices, rising interest rates and foreign investor selloff have also contributed to the decline in India’s forex warchest.</li></ul>The Rupee fell by over 6% against the US dollar this year – but it’s no free fall. The RBI has been doing all what it takes to arrest its fall with an old but effective strategy — the dollar deluge. And it has cost the Indian central bank a pretty penny — the bill came up to $40 billion, according to data from the RBI website. Experts believe that RBI has done a good job of reducing the volatility. After touching record lows twice last week, Rupee settled at 78.94 as of July 4. “The RBI is not really targeting a level – targeting a level won’t work. They are trying to keep the rupee stable by keeping the volatility low. This is something that they have achieved remarkably well,” Anindya Banerjee, vice president, currency and interest rate derivatives at Kotak Securities told Business Insider India. Banerjee’s comments indicate that without RBI’s intervention, it could have fallen much further. As of now, <a href="https://www.businessinsider.in/finance/news/indonesias-rupiah-currency-performed-better-than-rupee-in-asia/articleshow/92650008.cms">Rupee’s fall is comparable</a> to that of China’s Renminbi, Malaysia’s Ringgit and Thai’s Baht — and a point to note that these countries have a current account surplus while India has a current account deficit. “It is important to note that India’s current account balance has been extremely contained between a surplus of around 1% and a deficit of 2% of GDP over the past nine years, while it has posted a balance of payment surplus almost every year in the past decade, except in FY19,” said a report by Motilal Oswal. And, on an average annual basis, INR weakened every year except FY18. The report says that the current movement of INR is an anomaly and predicts that it could touch 80 against the dollar and come back to 77 in the next financial year. As per JM’s estimates, Rupee could go as low as 82 this financial year. <cmsannotation type="cmsannotation" annotationid="The dollar hoarding and an endurance test" comment="subhead" text="The dollar hoarding and an endurance test">The dollar hoarding and an endurance test</cmsannotation> Anomaly or not, RBI has been preparing for an event such as this by building its reserves – especially last year. Over the course of 2021, RBI built one of the highest forex reserves in the world, crossing the $640 billion mark. For a country that barely escaped a default three decades ago, it’s an important achievement. RBI’s forex reserves were on track to touch the $700 billion mark, but an unexpected duo of geopolitical concerns and a boil in crude oil prices helped strengthen the US dollar against most of the currencies in the world. RBI shifted its stance from that of a hoarder to a spender. It has been actively intervening in the forex markets to keep the rupee stable – not too strong and not too weak, experts told Business Insider India. <cmsannotation type="cmsannotation" annotationid="But how much has this cost the Indian central bank?" comment="subhead" text="But how much has this cost the Indian central bank?">But how much has this cost the Indian central bank?</cmsannotation> According to data from RBI, India’s forex reserves stood at nearly $634 billion at the end of 2021. Over the last six months, these reserves fell to $590 billion mark, registering a decrease of over $40 billion – accounting for nearly 7% of the reserves it had at the end of 2021. According to a JM Financial report, these reserves, along with well capitalized banks are potential counter-balancing buffers. But these strengths can be tested. “Our estimates indicate that there can be a further $40-50 billion drain in FY23E, and global stagflationary phases are typically followed by a phase of banking, currency and debt crisis in emerging markets (1980s-90s),” stated a report by JM Financial. <div type="Article" hostid="261" msid="92179370" title="Domestic investors brought in $3 for every $4 pulled out by foreign investors" mstype="2" mssubtype="0"></div> <cmsannotation type="cmsannotation" annotationid="Challenging 2022 keeps RBI on its toes" comment="subhead" text="Challenging 2022 keeps RBI on its toes">Challenging 2022 keeps RBI on its toes</cmsannotation> RBI had to step in to save its currency as crude oil went up from $77 per barrel to over $111.1 as Russia-Ukraine war made India’s largest import, too expensive to bear. Here’s how things have fared over the first six months of 2022: <table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Particulars </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Jun-22 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Dec-21 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Change </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Brent crude </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">$111.1 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">$77.24 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">44% </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">USD INR </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">78.96 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">74.51 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">6% </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Nifty 50 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">17,354 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">15,780 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">-10% </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">Forex reserves </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">$633.6 billion </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">$593.3 billion </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:bottom;padding:0pt 5.75pt 0pt 5.75pt;overflow:hidden;overflow-wrap:break-word;">-7% </td></tr></tbody><tbody></tbody></table> <cmsannotation type="cmsannotation" annotationid="Boiling crude and fleeing FIIs" comment="subhead" text="Boiling crude and fleeing FIIs">Boiling crude and fleeing FIIs</cmsannotation> While India has secured a discount from Russia on its crude oil imports, it still accounts for a small part of India’s total crude oil imports. The gulf countries still have the lion’s share which is undiscounted. Adding to that, in the first six months of this year, <a href="https://www.businessinsider.in/stock-market/news/are-we-worse-off-than-we-were-in-2008-foreign-investors-seem-to-think-so/articleshow/92598800.cms">foreign investors</a> have pulled out over $36 billion — taking away their dollars with them. <div type="image" title="FII inflows_outflows January 2022 to June 2022." msid="92655927" hostid="261" caption="&amp;lt;p&amp;gt;Foreign investors have pulled out over &amp;#8377;2.8 lakh crore.&amp;lt;/p&amp;gt;"></div> In a conversation with Business Insider, Shrikant Chouhan, executive vice president of Kotak Securities explained that despite the 11% correction this year so far, Indian equity markets have performed considerably better than the US. What this means is that the US markets have corrected better, and therefore provide a better investment opportunity than markets like India. The strong dollar and a declining rupee have also likely figured in the investment rationale of foreign investors, who have so far decided to go with the US rather than India. Adding to the laundry list of growing economic problems, the government is also faring poorly on the fiscal deficit front, with the deficit touching 12% of the budgeted estimate in April and May 2022, as compared to 8% in the previous year. However, on a positive note, the growing deficit was primarily driven by capital expenditure towards railways, roadways, agriculture, and defence — all which will ensure GDP grows – an answer to most of India’s economic problems. SEE ALSO: <a href="https://www.businessinsider.in/finance/news/indian-rupee-is-all-set-for-a-dark-winter-could-fall-to-81-a-dollar/articleshow/92036007.cms">Indian rupee is all set for a dark winter – could fall to ₹81 a dollar</a> <a href="https://www.businessinsider.in/stock-market/news/domestic-investors-brought-in-3-for-every-4-pulled-out-by-foreign-investors/articleshow/92179370.cms">Domestic investors brought in $3 for every $4 pulled out by foreign investors</a> <a href="https://www.businessinsider.in/finance/news/rbi-kept-the-rupee-exceptionally-stable-so-far-and-the-tide-could-turn-for-the-better-say-experts/articleshow/92414356.cms">RBI kept the rupee ‘exceptionally’ stable so far, and the tide could turn for the better say experts</a>

RBI’s ‘Save the Rupee’ bill has hit over $40 billion already and it could add another $40 billion this year

From Nykaa to Cipla to 3i infotech — these are some of the themes the market is betting on amid a sell-off

<ul><li>The US is in a recession now, but that doesn’t seem to be the top worry for <keyword id="1727754" type="General" weightage="50" keywordseo="jerome-powell" source="Orion">Jerome Powell</keyword>, the chairman of the <keyword id="117388" type="General" weightage="80" keywordseo="us-fed" source="Orion">US Fed</keyword>.</li><li>Experts see a combination of quantitative tightening and rate hikes directing US <keyword id="45672" type="General" weightage="100" keywordseo="fed" source="Orion">Fed</keyword>’s monetary policy for the next two years.</li><li>However, this has shrunk the window for a soft landing, and a deeper <keyword id="58692" type="General" weightage="20" keywordseo="us-recession" source="Orion">US recession</keyword> could spell “deep trouble” for India, say experts.</li></ul>There has been a lot of buzz about the US Fed’s rate hikes and how the markets have reacted to them, how foreign investors have been fleeing emerging markets like India and plowing money into the US instead, but many a common man might have wondered why they should care about it. The short answer is – the common man should care about US Fed hiking rates. The long answer depends on how complex this is to understand, but the short of it is, economies all over the world are more connected and dependent on each other than they have been before. Given the US Dollar’s status as the world’s reserve currency, and the US being the world’s largest economy, when the US Fed sneezes, the world catches a cold. But this time around, the US Fed sneezed after it caught a fever, thanks to its massive quantitative easing program that was resumed after Covid, resulting in it printing $5 trillion – by some estimates, this is nearly 80% of all the dollars that were in supply at the time. <cmsannotation type="cmsannotation" annotationid="The backstory: What is quantitative easing and where has it led us?" comment="subhead" text="The backstory: What is quantitative easing and where has it led us?">The backstory: What is quantitative easing and where has it led us?</cmsannotation> A bulk of the blame for the current quagmire goes to quantitative easing, but other geopolitical factors like the Russia-Ukraine war and the resulting sanctions drove inflation up all around the world, including the US, which is now in a recession. To arrest inflation, the US Fed has embarked on a rate hike regime. In his commentary, Fed chair Jerome Powell hinted at the possibility of another 50-75 basis point rate hike come September, but pundits peering through Powell’s words suggest he is now leaning towards a dovish outlook. What this means is that we may see the end of the rate hikes later this year, with rate cuts beginning some time in 2024. While this might come as a relief to those terrified of rate hikes – after all, who doesn’t love cheap capital – there’s a bigger weapon in the US Fed's arsenal – trimming the balance sheet, aka quantitative tightening. <cmsannotation type="cmsannotation" annotationid="Is the US in recession?" comment="subhead" text="Is the US in recession?">Is the US in recession?</cmsannotation> A post-Covid boom was all but expected until the end of 2021 – when things started to change slowly but decisively – and the US seems to have slow-walked itself and several other developed economies into a recession. The US is now technically in a recession, after the Q2 numbers showed the US GDP shrunk by 0.9%, after a 1.6% decline in the first three months of 2022. There is some disagreement about whether this qualifies as a recession or not, but those are more subjective opinions and assumptions. The popular rule of thumb is two consecutive quarters of GDP decline is a recession. <cmsannotation type="cmsannotation" annotationid="What is the US Fed doing about it?" comment="subhead" text="What is the US Fed doing about it?">What is the US Fed doing about it?</cmsannotation> The US Fed’s rate hikes are one of the reasons behind the slowdown in the economic activity in the US – runaway inflation print of 9.1% in June knocking down a 40-year-old record forced the Fed’s hand. Controlling the inflation and bringing it down to 2% levels is the goal of the US Fed, and for now, a recession is not the primary worry of Powell &amp; co. So far, Powell has announced 225 basis point rate hikes, and experts suggest he has the stomach for 75-100 basis points more. Possibility of a ‘soft landing’ seems marginally low now A continuation of recession has increased the likelihood of a hard landing, <a href="https://www.businessinsider.in/stock-market/news/a-recession-could-arrive-by-year-end-as-it-looks-more-unlikely-the-fed-will-stick-a-soft-economic-landing-bofa-says/articleshow/93191882.cms">say experts at Bank of America</a>, with the window for a soft landing becoming increasingly small. In simple terms, a soft landing refers to economic slowdown without the country going into a recession. Since the US is technically in recession already, and Powell’s goal for now is to tame inflation, even the Fed’s flexible definition of a recession will likely not matter soon. <div type="Article" hostid="261" msid="93113216" title="House of cards: Goldman Sachs cuts MSCI China's earnings growth to zero" mstype="2" mssubtype="0"></div> <cmsannotation type="cmsannotation" annotationid="What is quantitative tightening and how much is the US Fed ready to do?" comment="subhead" text="What is quantitative tightening and how much is the US Fed ready to do?">What is quantitative tightening and how much is the US Fed ready to do?</cmsannotation> Quantitative tightening (QT) refers to a policy of pulling out liquidity from the markets by letting bonds and securities mature, instead of issuing new ones to replace them and maintaining liquidity in the markets. Essentially, the US Fed bought bonds against which investors were credited money. In return, investors would have to pay interest – since these interest rates were extremely low, this was basically cheap capital available in the market. Under QT, the US Fed sells those bonds back in the market and receives money in exchange, thereby reducing the available liquidity in the market. The US Fed has now begun its quantitative tightening program, by slowly and steadily increasing the amount of liquidity it sucks out of markets. Estimates peg the monthly pullback at $95 billion, totaling to nearly $2.5 trillion over the next few years. While this seems like a substantial amount, researchers suggest that even this will be “roughly equivalent” to 50 basis points worth rate hikes. <div type="Article" hostid="261" msid="92897064" title="Rupee at 80: Here’s how a falling Rupee could impact India's current account deficit" mstype="2" mssubtype="0"></div> <cmsannotation type="cmsannotation" annotationid="How does QT affect the common man?" comment="subhead" text="How does QT affect the common man?">How does QT affect the common man?</cmsannotation> While rate hikes are understood well, quantitative tightening still remains a relatively less known tool in the arsenal of central bankers around the world. There are several factors and lots of unknowns at play here, ranging from how the US Fed oils its QT policies between aggressive and passive, how the markets respond and absorb these bonds, and just how potent QT is as a monetary policy tool. The impact of QT is still in the nether of the unknown, and despite the best attempts by economists and central bankers around the world to understand it, its real-world impact depends on a lot of moving and uncontrollable factors. If the US Fed manages to engineer a soft landing with the combination of QT and rate hikes, the possibility for the rest of the world to also have a soft landing increases, and that is what the common man in India should hope for. Otherwise, <a href="https://economictimes.indiatimes.com/markets/expert-view/deeper-us-recession-spells-big-trouble-for-india-says-swaminathan-aiyar/articleshow/93129880.cms?from=mdr">according</a> to noted economist Swaminathan Iyer, a hard landing for the world would mean a hard landing for India, too, and that spells “deep trouble” for India. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/markets-trend-higher-as-fii-flows-reverse-and-top-companies-hit-52-week-high/articleshow/93202891.cms">Markets trend higher as FII flows reverse and top companies hit 52-week high</a> <a href="https://www.businessinsider.in/stock-market/news/russia-faces-economic-oblivion-as-western-sanctions-continue-to-eat-away-at-gdp-new-study-says/articleshow/93142544.cms">Russia faces 'economic oblivion' as Western sanctions continue to eat away at GDP, new study says</a> <a href="https://www.businessinsider.in/business/corporates/news/it-is-attrition-rates-and-not-the-wage-hikes-dampening-indian-it-cos-earnings/articleshow/93120202.cms">It is attrition rates and not the wage hikes dampening Indian IT cos earnings</a>

You Searched For "fii activity in 2021" and got 11 results

Foreign investors have pulled out nearly $7 billion in the last two months, and over $12 billion since April this year

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There is a breather from record high inflation, but still above tolerance band: RBI

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Top stock picks for 2021 — Brokerages are betting big on Bharti Airtel, Tech M, HUL, Biocon, and Sun Pharma

Navdeep Yadav

The Bitcoin rally does not seem to be stopping anytime soon! Does this spell good news for Indian markets?

BI India Bureau

Election fever? Equities and SIP inflows mark record highs in May, per AMFI data

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Nifty Bank index up over 11% so far this year, BoB outperforms index

IANS

India’s FX reserves and fiscal policies will lead the India growth story

We delete millions of spam accounts a day to control trolls, says Twitter

Vaamanaa Sethi

RBI’s ‘Save the Rupee’ bill has hit over $40 billion already and it could add another $40 billion this year

Rounak Jain

From Nykaa to Cipla to 3i infotech — these are some of the themes the market is betting on amid a sell-off

Bhakti Makwana

Explained: US Fed’s rate hikes, quantitative tightening and its impact on India

Rounak Jain

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