FII Selling Drives Indian Market Underperformance Amid Soaring US Bond Yields
What happened
Foreign Institutional Investors have remained net sellers of Indian equities for 11 consecutive sessions since mid-September. This selling occurred as bond yields climbed, with the 10-year US Treasury yield surpassing 5.3% and the 30-year yield reaching 5.6%.
From indiatimes.com
Why it matters
The massive Foreign Portfolio Investor selling is cited as the primary reason for the Indian market's negative performance, showing a 13.87% decline in Nifty returns so far in 2026. Vijayakumar, Chief Investment Strategist at Geojit Investments, noted that the trend may only reverse when valuations become attractive.
From indiatimes.com
Who's involved
- VijayakumarChief Investment Strategist providing commentary on the financial sector
- Kotak Mahindra BankIndian private sector bank where Vijayakumar provides commentary
- Axis BankIndian private sector bank relevant to Vijayakumar's commentary
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Kotak Mahindra BankSpeculative
Indian private sector banks might face pressure on funding as elevated US bond yields make risk-free debt returns more lucrative than equities.