foreign investors Are betting big on telecom and realty stocks. At the same time, they are withdrawing their money from the stocks of FMCG segment. V.K., chief investment strategist at Geojit Financial Services. Vijayakumar says that an important trend seen in FPI activity is big selling in the FMCG segment and big buying in the telecom and realty sectors.
Considerable fluctuations in US bond yields
US bond yields have been quite volatile this year. The year started with a decline in yields as the market expected 6 rate cuts. He said, but when this did not happen, the market started considering 3rd rate cut because the US labor market remains tight.
Interest rates expected to be cut only twice
Now many experts think that rates can be cut only twice and they will be withdrawn in 2024. As a result, the US 10-year yield rose to 4.4 percent. This will impact FPI investment in India in the near future, he said. However, despite high US bond yields, FPI selling will remain limited as the Indian stock market is bullish and continues to hit new records, he said.
Domestic institutional investors are continuously investing
Motilal Oswal Financial Services said domestic institutional investors (DIIs) invested $0.8 billion for the eighth consecutive month in March 2024, the highest since April 2020. FIIs also made a strong investment of $4 billion in March 2024.
Input: IANS
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