The monetary policy tightening in the US and the subsequent strength in the dollar could continue to be a source of volatility for Indian equities in the coming months, due to their negative effect on earnings and balance of payments, said Morgan Stanley.
So far in September, FPIs bought Rs 8,638 crore worth of equities in India, the latest data available from National Securities Depository showed. In July and August, they infused Rs 4,989 crore and Rs 51,204 crore, respectively. September 2021 was the last time when foreign investors were net buyers.
Profit-booking in recent gainers coupled with disappointing results from SBI also took a toll on trading sentiment, brokers said.
