Foreign Investors Pull $3.2 Billion From Indian Markets as Oil Rally Returns
Foreign Investors Pull $3.2 Billion From Indian Markets as Oil Rally Returns What I Cover Tsvetana Paraskova is an energy and commodities journalist who has contributed to Oilprice.com for nearly a decade, covering global energy markets, commodities,… The renewed rally in oil prices above $100 per barrel Brent has prompted foreign investors to pull money out of India’s stock and bond markets at the highest pace since March, when the start of the Iran war and the oil supply crunch in Asia launched a massive exodus from Asian assets.
Following the largest outflows this year in March, India’s assets returned to booking inflows in April, May, June, and July, with a record of inflows in June, according to data from Clearing Corporation of India Limited compiled byBloomberg.
The record inflows in June coincided with the three-week reopening of the Strait of Hormuz and the decline in oil prices.
But as oil surged again in September amid renewed hostilities and still no pathway to peace, foreign investors are estimated to have sold off $2.1 billion worth of Indian stocks and $1.1 billion in index-eligible sovereign bonds this month, the data showed.
Therise in oil pricesis pressuring the Indian currency, the rupee, again, which has been one of the worst performers in Asia in the third quarter amid surging oil prices and persistent economic pressures resulting from these.
Higher oil prices and inflation, and rising global yields, are triggering renewed investor outflows from Indian assets.
“Oil will be the biggest factor determining whether India sees renewed foreign outflows,” Gautam Chhaochharia, head of global markets India at UBS Group, told Bloomberg.
High oil prices are set to limit any meaningful gains in Indian stocks in the coming weeks and months, according to the bank.
Oil prices rose in Asian trade on Wednesday, withBrent Crudeat $103 per barrel andWTI Crudeat $89 per barrel.
Both crude oil benchmarks were set to post a monthly gain again as uncertainty about Middle East oil flows remains high and global fuel markets tighten further.
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Refineries Maxed Out Saudi Arabia Discovers 110 Million Tonnes of Uranium-Bearing Ore Strait of Hormuz Shipping Traffic Falls Further as Saudi Oil Flows Rise Energy Giants Are Betting Billions on a World of Longer Oil Routes Oil Above $100 Pushes U.S.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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