paragraph

The net foreign fund outflow from Indian markets in 2022 has crossed the ₹2-lakh-crore mark, the biggest annual figure ever and more than double the previous high of ₹80,917 crore recorded in 2018. Of the total, over 90%, or about ₹1.9 lakh crore, was because of selling by foreign portfolio investors (FPIs) in the stock market, <a target="_blank" href="https://timesofindia.indiatimes.com/business/india-business/fpi-outflow-tops-rs-2l-cr-over-double-of-2018-high/articleshow/92239268.cms">TOI reported</a>.

Galloping inflation, a rising <a target="_blank" href="https://mintgenie.livemint.com/news/markets/india-s-current-account-deficit-likely-hit-a-three-year-high-at-438-billion-in-fy22-151654837865397">current account deficit</a>, a <a target="_blank" href="https://mintgenie.livemint.com/news/markets/can-the-rupee-go-beyond-80-per-dollar-mark-by-next-year-151654681314490">weakening currency </a>and the decision by the <a target="_blank" href="https://mintgenie.livemint.com/news/markets/us-fed-s-powell-sets-path-to-restrain-economy-and-stop-runaway-inflation-151655347480040">US Fed </a>to raise rates in the world’s largest economy at a very fast clip have compelled foreign fund managers to take money off risky emerging-market assets, including those from India, analysts and brokers said.

On Wednesday, the rupee closed 7 paise down at a record low of 78.07 against the dollar.

June is the ninth consecutive month that <a target="_blank" href="https://mintgenie.livemint.com/news/markets/fpis-sold-span-class-webrupee-span-16-000-crore-worth-of-it-stocks-12-000-crore-worth-of-financial-stocks-in-may-report-151654745181266">FPIs </a>have been net sellers in India, taking the total to nearly ₹2.5 lakh crore during this period. So far this month, in just 15 days, FPIs have net sold stocks worth nearly ₹25,000 crore, official data showed. On Wednesday too, FPIs were net sellers in the market to the tune of ₹3,531 crore. This data will be incorporated into the figures that will be reported on Thursday.

According to a leading debt fund manager, the FPI outflow could continue for a few more months, at least till the time, there is clarity about how far the US Fed will move to tighten liquidity in the US.

To tame inflation, US Fed chairman Jerome Powell has indicated that rates should be raised very quickly and aggressively. The Fed has also said that it would reduce its balance sheet size at a rate of $95 billion per month. Since the COVID pandemic started in early 2020, the US central bank has been buying bonds from the market and in turn, infusing funds into the system.

During the pandemic, the <a target="_blank" href="https://mintgenie.livemint.com/news/markets/the-era-of-cheap-money-is-coming-to-an-end-what-does-this-mean-for-you-151651736518021">Fed purchased </a>$3.3 trillion in Treasuries and $1.3 trillion in mortgage-backed securities in order to keep borrowing costs low.

Given that retail inflation in the US is at a 41-year high, the Fed, along with raising rates, has also stopped buying bonds. In addition, starting this month, it has started selling bonds it’s already holding.

FPI outflow from Indian markets has crossed ₹2 lakh crore in 2022, over double of 2018 high: Report

June is the ninth consecutive month that FPIs have been net sellers in India, taking the total to nearly ₹2.5 lakh crore during this period. On Wednesday too, FPIs were net sellers in the market to the tune of ₹3,531 crore.

Can a recession hit the IT sector? What's the road ahead for the sector in times of slowing economies?

Before Market Opens: From US Fed to gold; 9 things to know at 9 am on June 16, 2022

US Federal Reserve’s Uncommon Hike: Five Pressure Points to Watch in Asia; Good news for India? 

US Fed's Powell Sets Path to Restrain Economy and Stop Runaway Inflation

Oil Edges Higher as Traders Weigh Rate Hike, Rising US Output

Bond Market Losses Just Beginning as Fed Sets Path to 4% Yields

It’s Not ESG Driving Big Oil Away From Its Biggest Reserves

Consumer durables stocks have fallen 20-30% since the start of the year; Here is why

Crypto Crash: Bitcoin slides towards $20,000

Market Wrap: Sensex pares intra-day gains to settle over 100 points lower

The 30-share BSE index declined 100.42 points or 0.19 per cent to settle at 53,134.35. During the day, it jumped 631.16 points or 1.18 per cent to 53,865.93.

Bank of England Says Global Outlook Has ‘Deteriorated Materially’

The Bank of England said the global economic outlook has deteriorated materially after surging commodity prices pushed up inflation around the world, posing a further downside risk in months ahead.

Vauld to be rescued? Crypto lender Nexo says plans to buy it

Nexo, which is based in London, said it would buy up to 100% of Vauld and reorganize its future operations with the aim to accelerate its deeper presence in Asia. It did not say when the deal would close.

These penny stocks defied weak market sentiment; surged over 1000% in this year 

Three penny stocks rallied over 1,000 percent in the first half of 2022 despite the ongoing volatility in the domestic equity markets.

Stock Market: Is it time to get greedy and buy shares?

<ul><li>Although there are some charts that suggests that markets may not have bottomed as yet; however, based on the past trends, they may bottom out in next few months and therefore the next 6-12 months look extremely crucial from the view of wealth creation over the next 3-4 years.</li></ul>