Mumbai: Overseas fund managers’ appetite for Indian equities has dimmed of late as a strengthening
dollar, rising oil prices and stretched share valuations have made them wary about near-term prospects. Foreign Portfolio Investors have been sellers in nine out of the 11 previous trading sessions since June 16. Their net outflow in this period was only over Rs 250 crore but that was on account of bulk deal inflows into select stocks on two days. But for these purchases, the FPI sales figures would have been much higher.
“A weakness in the US dollar rate against the rupee could be reflected in changing risk attitudes of investors,” said Mark Mobius, veteran emerging markets investor and founder of Mobius Capital Partners.