New Delhi: Foreign portfolio investment inflows have slowed down in August to the lowest figures in the last four months.
Reports on Times of India and Mint have identified higher crude oil prices, resurfacing of inflation risks and worries about impending rate hikes in the US which in turn resulted in higher bond yields and a stronger dollar, as reasons behind the slow down.
The past three months had seen infusions of Rs 40,000 crore each. August saw the inflow of Rs 12,262 in Indian equities.
PTI has reported that according to the data with depositories, the Rs 12,262 crore figure includes investment through the primary market and bulk deals, which have been gathering momentum recently.
The net inflow by FPIs was at Rs 46,618 crore in July, Rs 47,148 crore in June, and Rs 43,838 crore in May. Before that, the inflow amount was Rs 11,631 crore in April and Rs 7,935 crore in March, data with the depositories showed, according to PTI.
Experts that the two outlets spoke to said that currency volatility and concerns on the global macroeconomic front hold sway over FPIs
Firming up of bond yields in the US may have also led investors to the less risky US treasuries, an expert tells TOI.
This and a strong dollar index account for why FPIs have been sellers in the cash market, an expert told Mint.
Uncertainty about oil prices that have been rising and remains a threat to India has added to the concerns, the report further says.