Business
Selloff 2022: Foreign Portfolio Investors (FPI) or Fair Weather Friends

The sharpest rate hike of 75 basis points since 1994 by the US Federal Reserve is the latest flashpoint in the global and Indian stock markets reeling under massive selling pressure of foreign investors.
Indian and global markets too slumped on Thursday over recessionary fear after the US Fed raised interest rates by 75 bps, the biggest increase since 1994. Further, Fed Chair Jerome Powell signalled another big move (50-75 bps hike) next month, intensifying its fight to contain rampant inflation.
It has sharply increased the interest rate target to 3.4 per cent for 2022 and 3.8 per cent for 2023, according to Motilal Oswal Financial Services.
Sorbh Gupta, Fund Manager, Equity, Quantum AMC, said in a note that May has seen FPI outflows of $5.17 billion. This has been the thirst worst month of FPI flows since FPI investments were allowed to invest in India in 1991.
“Interestingly, of the five ‘worst ever’ months of FPI flows, 4 have come in this calendar year. Domestic institutional investors (mutual funds and insurance put together) have been net buyers for May 2022 to the tune of $6.57 billion,” he added.
Equity investors who have invested in equity markets in the last two-three years have seen mostly positive returns and a swift recovery after every correction. The current volatility and slow grind of the markets will test their patience, Gupta said.
S&P BSE SENSEX declined by (-) 2.16 per cent on a total return basis in the month of May 2022.
It has underperformed developed market indices like S&P 500 (0.18 per cent) and Dow Jones Industrial Average Index (0.32 per cent). S&P BSE SENSEX has also underperformed MSCI Emerging Market Index (0.46 per cent). The broader market has been weaker, S&P BSE Midcap Index has declined by (-) 5.5 per cent for the month & S&P BSE Small cap Index declined by 7.8 per cent.
The power and metal sectors which have been hogging the limelight over the past few months were the biggest losers, falling by 11.3 per cent and 15.5 per cent, respectively. The BSE Auto Index was the only sectoral indices in the green moving up by 4.9 per cent.
Yes Bank said in a note that the higher current account deficit will not be fully covered by capital flows in FY23. India has already witnessed FII outflows of $30.5 billion since October 2021 and $9.4 billion since April 2022, from both debt and equity.
“Even as we expect FDI flows to stay on a strong footing (though weaker than the previous fiscal) and short-term trade finance to remain buoyant, overall flows under the capital account is expected at around $55 billion in FY23, compared to $94 billion in FY 22,” the note said.
The risks of a lower BoP balance cannot be ruled out in the event of larger outflows than being currently anticipated.
As per the IIF, capital flows to EM, including India, are expected to slow to $972 billion this year from $1.68 trillion in 2021, a decline of 42 per cent YoY.
Excluding China, the net capital flows are likely to drop to $645 billion, down from $1 trillion last year. The underlying weak fundamentals of the EM economies on account of higher oil prices, high Current Account Deficit (CAD), elevated general government debt to GDP ratio and limited fiscal space to support growth is likely to limit the possibility of much capital pull into the region, Yes Bank said.
In FY 2021-22 alone, FIIs sold their investments for approximately worth Rs 1.22 lakh crore as against FY 2020-21 where they invested around Rs 2.67 lakh crore. There are multiple reasons because of which FIIs started pulling out their investments from the Indian markets since the last financial year, Angel One said in a note.
The Russia-Ukraine war took centre stage in the last week of February. Uncertainties and geopolitical complexities that arose due to this war have created a fear among foreign investors. This has resulted in the FIIs outflows in India.
India is the third largest consumer of crude oil and is also the third largest importer of crude oil across the globe. The heat of the Russia-Ukraine war had a massive impact on the global economy as the crude oil prices spiked. These soaring crude prices turned the Indian stock market volatile and resulted in the increase in the costs of transportation and an increase in inflation. This impact on the economy and imports influenced foreign investors’ sentiments which pushed them to pull their money out of the Indian stock market, Angel One said in a note.
Indian markets are aligned with the US and the other global markets which means if the other markets start falling, Indian markets will also be impacted. Among the major reasons that are recently affecting the US economy are higher inflation, an expected rise in the interest rate to control inflation and rising inflation has led to a sharp jump in the US bond yields.
Business
Demand for homes priced Rs 1 crore and above boosts market in India: Report

Mumbai, April 24: The demand for homes prices Rs 1 crore and above bolstered the Indian property market in the first quarter this year, preventing overall sales of 65,250 units from hard landing, a report said on Thursday.
Residential sales in Q1 2025 (January-March) experienced only a modest decline and added up to 65,246 units. This limited drop was primarily due to robust demand in the Rs 3-5 crore and Rs 1.5-3.0 crore segments, which helped counterbalance the slowdown in relatively affordable housing, according to a JLL report.
The steady growth in higher ticket size homes indicates increasing affluence among homebuyers, changing lifestyle preferences and buyers prioritising larger and premium properties.
According to the report, housing sales in India’s top seven cities continued to be dominated by Bengaluru, Mumbai, and Pune, which collectively accounted for 66 per cent of Q1 sales.
High concentration of MNCs and startups creating significant employment opportunities and ongoing infrastructure improvements make these cities increasingly attractive places to live and work.
It is interesting to note that over the last few quarters a significant share of quarterly sales volume has been contributed by projects launched during the same quarter.
Q1 2025 was no exception, with around one-fourth of its sales being contributed by quarterly new launches. Launches by reputed developers with assurance of timely delivery and steady price appreciation, are driving the trend, the report informed.
“The residential real estate market is showing signs of a shift in buyer preferences with lowering of demand for less than Rs 1 crore housing and a growing affinity for mid to high-end properties. This as well suggests a potential upward movement in the overall market dynamics,” said Dr Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.
“This upswing in the higher-priced segment demand has shielded the overall housing sales from a sharper decline,” Das added.
Developers are focusing more on mid to high-end projects to align with current demand patterns. High-end housing sector experienced a steady upswing with 107 per cent year-on-year growth in launches of properties priced at Rs 1 crore and above, driven by strong sales in this segment.
Growth in launches despite economic uncertainties signals robust developer confidence in high-end housing demand, said the report, adding that 2025 is poised for robust growth in the residential sector demand.
Business
GreenLine flags off LNG truck fleet for Bekaert to drive sustainable logistics

Mumbai, April 24: GreenLine Mobility Solutions Ltd., an Essar venture and India’s only green logistics operator of LNG and electric-powered heavy commercial trucks, has partnered with Bekaert, a global leader in tire reinforcement technology, to decarbonise road logistics and support India’s vision of a gas-based economy.
The partnership was flagged off with the deployment of GreenLine’s LNG-powered trucks at Bekaert’s Ranjangaon Plant, marking the beginning of a pilot phase that aims to significantly reduce the carbon footprint of Bekaert’s logistics operations.
Each GreenLine LNG truck is expected to reduce up to 24 tonnes of CO₂ emissions annually, contributing to Bekaert’s ambition of becoming carbon net-zero by 2050 and achieving 65 per cent of sales from sustainable solutions.
Commenting on the partnership, Anand Mimani, CEO, GreenLine Mobility Solutions Ltd, said, “Our partnership with Bekaert demonstrates the growing commitment of forward-thinking corporates to drive sustainability at scale. At GreenLine, we are proud to offer not just green trucks, but an integrated ecosystem — from LNG refuelling to real-time telematics — that empowers our partners to make meaningful progress on their net-zero goals.”
Dinesh Mukhedkar, Procurement Operations Lead — South Asia and Procurement Global Shared Service Centre Lead, Bekaert, added, “As part of our purpose ‘Establishing the new possible,’ and our ambition to lead in safe, smart, and sustainable solutions, decarbonising logistics is an essential step. This directly supports our commitment to ESG principles and long-term sustainability goals.”
GreenLine’s expanding fleet of LNG-powered trucks has already clocked more than 40 million km, avoiding over 10,000 tonnes of CO₂ emissions. The company’s ongoing expansion includes plans to deploy over 10,000 LNG and EV trucks, supported by a nationwide network of 100 LNG refuelling stations, EV charging hubs, and battery swapping facilities — targeting a reduction of 1 million tonnes of carbon emissions annually.
Business
US tariffs pose major headwinds, need to diversify supply chains: BOK chief

Seoul, April 24: South Korea’s top central banker has said global trade tensions sparked by the United States’ sweeping tariff policy are a major headwind for the country’s export-driven economy, and the issue will likely accelerate its efforts to diversify supply chains.
Bank of Korea (BOK) Governor Rhee Chang-yong made the assessment during an interview with CNBC in Washington, where he is attending meetings of the Group of 20 (G20) finance ministers and central bank chiefs, as well as International Monetary Fund–World Bank Group (IMF-WBG) meetings, reports Yonhap news agency.
“We are an export-oriented economy. So the trade tension, definitely, too is large headwinds. We will be affected directly by the U.S. tariffs, and also indirectly to its tariff to other countries. For example, our semiconductor production in Vietnam, car and electronics production in Mexico and our battery production in Canada will be affected,” Rhee said.
“I really hope this trade tension will dissipate, because it’s bad for everybody,” he added.
But South Korea has “some strengths” to manage the issue, as the country has been “luckily” diversifying its supply chains, particularly from China, over the last several years amid growing competition from China and some political issues between the two nations.
“This is a kind of natural movement to diversify our supply chain and also move up to the value chain. So that will continue, but at the same time, the recent trade tension will probably expedite the move,” Rhee said.
Speaking of economic growth, Rhee said it is hard to present a growth outlook due to high uncertainties surrounding the U.S. tariff policy.
“At this moment, I don’t know what kind of trade tension scenarios we have to assume as a baseline or reference scenarios,” Rhee said. “I may have a better idea after tariff talks with the U.S. tomorrow.
South Korea and the U.S. are set to hold tariff talks in Washington on Thursday (U.S. time), as the Donald Trump administration has put on hold the implementation of 25 percent reciprocal tariffs on South Korean imports for 90 days.
South Korea’s real gross domestic product (GDP) contracted 0.2 percent in the January-March period from the previous quarter, according to the BOK’s preliminary data released in the day.
The BOK earlier expected the South Korean economy to expand 1.5 percent this year, but Rhee later said the outlook seemed “too optimistic” and the central bank will come up with its adjusted figure in May.
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