With interest rates rising in developed markets like the US and the Euro zone, foreign portfolio investors (FPIs) who were big investors since May this year pulled out funds from the Indian market last week.
During the last seven trading sessions, FPIs sold stocks worth Rs 8,545 crore (over US $ one billion) in the cash market. The selling started after The US Federal Reserve, the most powerful central bank in the world, hiked the interest rates by 25 per cent last week amid indications that higher inflation is likely to linger longer even though the Fed had already covered a lot of ground to bring interest rates to a two-decade high.
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