FPIs’ contribution to the institutional flow at 73% in December increased sharply from 10% a month ago and 34% a year ago reflecting a change in stance. After selling heavily during the first half of 2023, FPIs deployed Rs 66,134 crore in December alone. It was their highest monthly inflow, surpassing the previous high of Rs 62,016 crore in December 2020. FPIs had invested Rs 9,000 crore in November 2023 in domestic equities.
De-dollarisation and its impact on commodities and global trade
For decades, the US dollar has dominated global trade and commodity markets. Most commodities, including crude oil, natural gas, gold, industrial metals, and agricultural products,