Rising greenback and bond yields making it more durable for FIIs to remain placed on D-Avenue

Amid a spurt within the US Greenback index and bond yields, international institutional traders or FIIs are again to promoting mode on Dalal Avenue. Final Friday alone, FIIs dumped Indian shares price round Rs 2,900 crore, reveals NSDL information.

FIIs, which had been web consumers to the tune of over Rs 51,000 crore final month, have purchased Indian equities price solely about Rs 8,368 crore thus far within the month.

“FII exercise has turned extremely risky with alternate bouts of shopping for and promoting. In September until twenty third, FIIs purchased for 8 days and bought for 8 days within the money market. Elevated FII promoting has occurred in latest days on account of rising greenback and rising bond yields within the US,” mentioned Dr VK Vijayakumar, Chief Funding

Strategist at

.

Because the demand for the protected haven soared after the US Fed’s hawkish-than-expected stance, the US greenback index has now crossed the 113 mark, its highest stage in twenty years. The Indian rupee additionally breached the 81 mark in opposition to the buck because of this, final week.

Yields on the benchmark US 10-year Treasury stood at round 3.69%, their highest stage since 2010.

Analysts say FIIs are unlikely to purchase aggressively going ahead except the greenback index and US bond yields decline.

“In September, FPIs had been sturdy consumers in financials, autos and capital items and sellers in IT. If FPIs once more flip consumers, financials will once more emerge stronger since financials have sturdy basic assist,” Vijayakumar mentioned.