Foreign portfolio investors (FPIs) offloaded Rs 16,422 crore worth of Indian equities last week, according to data from the depositories. This was driven by concerns over valuations and new policy measures by the US government, but sentiment is set to reverse.

Analysts believe that the $100,000 fee on new H-1B visa applications and high tariffs on branded drugs have raised concerns among FPIs regarding earnings pressure in India’s IT and pharmaceutical sectors.

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HSBC Global Investment Research also highlighted that the potential impact on India’s pharma sector is unlikely to have an immediate impact on Indian exports, as the bulk of India’s contribution lies in simple generics.

Further, the depreciation of the Indian rupee, in contrast to the appreciation of other emerging

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