The massive outflow of foreign funds is alarming, analysts say

Analysts have estimated that outflows reflect a shift in the investment pattern of emerging economies toward stable, high-yielding badets such as US stocks.

Economic growth prospects led to a mbadive outflow of foreign funds from the country's capital markets segment.

"The output in the last nine months was 50,000 crores. The rupee and the equation in US dollars were the main trigger. This is not a good sign for the Indian capital market, "said Astha Jain, Senior Analyst at Hem Securities

narrow range.We will not see the indexes reach new heights."

As a result, cash outflows in foreign currencies from the beginning of October exceeded the highest level in the last 12 months, as indicated by stock market data.

According to preliminary stock market data, in just 13 trading sessions as of October 1, foreign investors sold shares for a value of about 19,500 rupees.

There were only four occasions in more than 10 years, when the outflow of foreign funds on a monthly basis crossed the 19,000 crore mark. Exit is 19,433.57 crores of Rupees

Analysts believe that the outflows show a shift in the investment model of emerging economies towards stable and high yielding badets such as US securities. Foreign investors are sellers from the first week of November to the first week of December. This time, they prefixed it for a month because of the macroeconomic situation in our country and the rise in Fed rates, among other reasons. "

He has He also warned in these terms:" We hope that this exit rate will decrease, because it's not doing it … especially beyond one or two weeks, we are find in a more troubling and troubled period. " its key rate of 0.25% for the third time in 2018. A rise in rates on the part of the Fed has generally led foreign funds to leave the major emerging markets such as India. A Brooking frost told IANS: "This is a sign that our economic outlook is not solid. Investors may have found other areas of investment, for example the yield of US bonds, which offer better returns. "

" Various reasons have played out, micro-deterioration, uncertainty related to the election year, which also resulted in the markets will fall and the value of the rupee will continue to slide.

In addition, the trend has emerged at a time of great volatility in the Indian stock market because of global concerns about trade and local macroeconomic fundamentals.

According to Vinod Nair, head of research at Geojit Financial Services: "FII flows are subject to tensions due to the increased performance of global bonds and concerns over trade war. As a result, funds are shifting away from non-dollar denominated badets. "The rapid pace of rising interest rates and concerns over the trade war may slow down the global economy."