FPIs continued offloading their investments in the Indian capital market in March first week as rising yields in has resulted in a net outflow as investors move towards the US for better returns. RBI, resultantly, has resorted to selling dollar in the market to quell the depreciatory pressures on Rupee due to outflow. Hence forex reserves have declined by $120 billion since September 2021 peak. This week, investors are set for a Rs 289.6 billion worth of state bonds sales by RBI.
March 6, 2023