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.
National
After LS nod, Amit Shah to move Immigration and Foreigners Bill in RS today

New Delhi, April 2: The Rajya Sabha on Wednesday will discuss the Immigration and Foreigners Bill, 2025 which has already been passed by the Lok Sabha.
As per the business list of Upper House, Union Minister Amit Shah will move that the Bill “to confer upon the Central Government certain powers to provide for requirement of passports or other travel documents in respect of persons entering into and exiting from India and for regulating matters related to foreigners including requirement of visa and registration and for matters connected there with or incidental thereto, as passed by Lok Sabha, be taken into consideration.”
He will also seek the passing of the bill after a discussion is held by the members of the House.
A key aspect of the Bill is the implementation of enhanced surveillance and security protocols. The Union Home Minister while speaking about the importance of the bill in the Lok Sabha had said, “It will strengthen the country’s security and economy, pave the way to make our education system and universities global, lay a strong foundation for research and investigation in the country and make India number one in the world in every field by 2047.”
He said that immigration was not an isolated issue but many issues of the country were directly or indirectly linked with it. He said that it was very important for the security of the country to know who is entering our borders, when they are entering, for how long they will stay and the purpose for which they are here.
Also to be tabled in the Rajya Sabha is the Boilers Bill, 2024, returned by Lok Sabha with Amendments. Union Minister Piyush Goyal will move that the amendments made by Lok Sabha be taken into consideration.
Union Minister Manohar Lal Khattar will make a statement regarding the “Status of implementation of the recommendations contained in the Tenth Report (Seventeenth Lok Sabha) of the Department-related Parliamentary Standing Committee on Housing and Urban Affairs on ‘PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi)’ of the Ministry of Housing and Urban Affairs.”
Upper House members Sushmita Dev, Rekha Sharma and Bikash Ranjan Bhattacharya will present the “366th Report (in English and Hindi) of the Department-related Parliamentary Standing Committee on Education, Women, Children, Youth and Sports on ‘Demands for Grants (2025-26)’ pertaining to the Ministry of Youth Affairs and Sports.”
Business
Sensex plunges nearly 2 pc amid US reciprocal tariff concerns

Mumbai, April 1: Indian stock markets on Tuesday witnessed a sharp decline on the first trading day of the new financial year. The fall came as investors reacted to global market concerns, especially the upcoming US reciprocal tariffs on April 2.
The Sensex, which represents 30 major companies, dropped by 1,390.41 points or 1.80 per cent to close at 76,024.51. During the trading session, it fluctuated between an intra-day high of 77,487.05 and a low of 75,912.18.
The Nifty index also tumbled 353.65 points or 1.50 per cent, ending at 23,165.70. It touched a high of 23,565.15 and a low of 23,136.40 during the intra-day.
Almost all stocks in the Sensex index ended lower, except Zomato, IndusInd Bank, and State Bank of India (SBI).
The biggest losers included HCL Technologies, Bajaj Finserv, HDFC Bank, Bajaj Finance, and Infosys, which saw their share prices decline by up to 3.66 per cent.
Midcap and smallcap stocks also faced pressure. The Nifty Midcap100 index closed 0.86 per cent lower, while the Nifty Smallcap100 index slipped 0.70 per cent.
The BSE Midcap index was down 0.9 per cent, whereas the Smallcap index managed to rise slightly by 0.2 per cent.
Sector-wise, most indices ended in the red, with IT, real estate, and consumer durables stocks falling by around 2 per cent each. Only media, oil & gas, and telecom stocks managed to stay positive.
Market volatility also surged as the India VIX, commonly known as the fear index, jumped 8.37 per cent to 13.78 points. This suggests that investors are increasingly cautious about the market’s direction.
Analysts suggest that market fluctuations may continue until there is more clarity on global trade relations and economic policies as investors remain concern about Trump’s tariff policies and their impact on international trade.
“Amid heightened global volatility ahead of the anticipated US reciprocal tariff announcement tomorrow (US time), the domestic market witnessed a significant sell-off today. Investors are eagerly awaiting the specifics of these tariffs while also keeping a close eye on ongoing negotiations for a potential Indo-US trade agreement,” said Vinod Nair, Head of Research, Geojit Investments Limited.
The IT sector was among the hardest hit due to its substantial exposure to the US market, and real estate stocks fell following Maharashtra’s upward revision of ready reckoner rates, which affect property valuations.
National
Bengal minister among 30 TMC MLAs asked to clarify absence on last day of Assembly session

Kolkata, April 1: The internal disciplinary committee of Trinamool Congress’ legislative party in the West Bengal Assembly has finally shortlisted 30 party MLAs, including a member of the state cabinet for being absent on March 20, the last day of the second phase of the budget session, ignoring the party whip.
The absent MLAs had not even given prior intimation about their absence to the office of the Speaker, Biman Bandopadhyay.
These legislators, including the state minister, will have to personally appear in front of the disciplinary committee this month and justify why internal disciplinary action will not be initiated against them for ignoring the party whip.
The name of Manoj Tiwari, the cricketer-turned-politician and the current West Bengal Minister of State for Youth and Sports Affairs department, also figures in the list of those who will have to justify the reason behind their absence during House proceedings and ignoring party whip, said a member of the disciplinary committee who refused to be named.
Tiwari joined Trinamool Congress in 2021 before the state Assembly elections that year and was elected as a party legislator from the Shibpur Assembly constituency in the Kolkata-adjacent Howrah district. After the new state cabinet was announced, his name figured in the list.
Initially, it was decided that the meeting of the internal disciplinary committee would be conducted on March 29. However, the meeting on that date was cancelled because of the preoccupations of the MLAs including the members of the disciplinary committee because of the Eid festival.
The committee is chaired by the state Parliamentary Affairs Minister, Sovandeb Chattopadhyay. The other members of the committee include the West Bengal Minister of State for Finance (independent charge) Chandrima Bhattacharya, the state Municipal Affairs and Urban Development Minister and Kolkata Mayor Firhad Hakim, state Power Minister Arup Biswas and the chief whip of Trinamool Congress’s legislative party in state Assembly, Nirmal Ghosh.
Trinamool Congress had issued a whip, making the presence of all party legislators mandatory on the last two days of the second phase of the budget session on March 19 and March 20.
Although the presence on the part of the legislators was almost 100 per cent on March 19, several legislators, including the minister, skipped attendance on March 20.
-
Crime3 years ago
Class 10 student jumps to death in Jaipur
-
Maharashtra6 months ago
Mumbai Local Train Update: Central Railway’s New Timetable Comes Into Effect; Check Full List Of Revised Timings & Stations
-
Maharashtra6 months ago
Mumbai To Go Toll-Free Tonight! Maharashtra Govt Announces Complete Toll Waiver For Light Motor Vehicles At All 5 Entry Points Of City
-
Maharashtra6 months ago
False photo of Imtiaz Jaleel’s rally, exposing the fooling conspiracy
-
National News6 months ago
Ministry of Railways rolls out Special Drive 4.0 with focus on digitisation, cleanliness, inclusiveness and grievance redressal
-
Crime6 months ago
Baba Siddique Murder: Mumbai Police Unable To Get Lawrence Bishnoi Custody Due To Home Ministry Order, Says Report
-
Maharashtra5 months ago
Maharashtra Elections 2024: Mumbai Metro & BEST Services Extended Till Midnight On Voting Day
-
National News6 months ago
J&K: 4 Jawans Killed, 28 Injured After Bus Carrying BSF Personnel For Poll Duty Falls Into Gorge In Budgam; Terrifying Visuals Surface