Brajesh Mohan - RBI, NABARD
February 17, 2025 at 08:37 AM
The exodus of FPIs from the Indian equity markets continues as they pulled out Rs 21,272 crore in the first two weeks of this month, driven by global tensions after the US imposed tariffs on imports.
This came following a net outflow of Rs 78,027 crore in January. With these, the total outflow by FPIs has reached Rs 99,299 crore -- near Rs 1 trillion -- in 2025 so far, data with the depositories showed.
The real reason is Rupee depreciation, U.S. bond yields rise, slower economic growth forecast and most importantly over valued Small and Mid Cap index.
Cons: Many, stocks are bleeding, people are loosing a lot.
Pros: Bank may benifit if Deposits come back in form of increased FD & RD