Tag : NASDAQ

New Delhi: The last time that the FIIs bought on a net basis for the year was in 2019 and 2020 when they invested Rs 40,000 crore and Rs 64,000 crore, respectively. At this time, domestic institutions also bought 42,000 crore in 2019 but sold 36,000 crore in 2020. In 2021, FIIs sold Rs 93,000 crore while domestic funds bought 95,000 crore. In the current year till date, FIIs sold Rs 2.67 lakh crore and Domestic institutions bought 2.15 lakh crore. What has led to this massive sell-off is the first question that comes to mind. The first and foremost reason is of course inflation which is at a record over 40 year high in the US and is threatening to continue to rise. Gas prices and now mortgage rates are hitting the normal citizens in the under-belly. They have both risen very fast and are at levels which are close to double compared to the last six months. With such high outgoings, things are unlikely to improve as the FED raises interest rates to keep inflation under control. With a 75-basis point hike in the previous week and another similar hike imminent in six weeks' time, the rates would be at 2.25-2.5 per cent by July end. Unthinkable for the US which believed that inflation would never hit them in the near future. The next question that comes to mind is why such sharp selling had to be done. India as a market has outperformed the US markets and investments in India even though we are at a 52-week low as of Friday is far better than what the US has done during the same period. Incidentally, the US is also at a 52-week low. While the Indian benchmark indices on a year-to-date basis have seen BSESENSEX lose 11.83 per cent and NIFTY lose 11.87 per cent, Dow Jones has lost a massive 18.09 per cent. NASDAQ has lost much more and is n ...