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In the realm of US bond yields, there has been notable volatility throughout this year, driven by speculations surrounding potential rate adjustments by the Federal Reserve (Fed). At the outset of the year, the market anticipated six rate cuts in 2024, leading to a gradual decline in yields. However, as the year progressed and the US labor market remained robust, market sentiment shifted to expecting only three rate cuts.

The EU and G7 initiated the ban on imports of Russian-origin diamonds through third countries in early March as part of sanctions against Moscow in response to its invasion of Ukraine. Jaishankar expressed the government's determination to delay, soften, or ideally prevent the ban altogether, considering it a critical issue. He reassured that efforts would be made to find a resolution in the upcoming days.

During February up to the 16th, FPIs divested equity holdings amounting to Rs 6,112 crores through exchanges. However, investments in 'the primary market and others' mitigated the net selling figure for the same period to Rs 3,775 crores. Overall, in the year 2024, FPIs have offloaded holdings worth Rs 29,519 crores.

As of February 9, FPIs have reportedly divested equity holdings worth Rs 3,074 crores while acquiring debt instruments worth Rs 15,093 crores. This ongoing trend reflects total equity divestment of Rs 28,818 crores and debt procurement of Rs 34,930 crores in the year 2024 thus far.

The surge in bond yields in the United States has raised concerns and has been a driving factor behind the recent selling spree in the cash market.

Two main reasons have been cited for this shift in FPI strategy. First, the rise in US bond yields, with the 10-year yield increasing from 3.9% to 4.15%, has triggered capital outflows from emerging markets.

In the past two days, FIIs have significantly offloaded equity, amounting to Rs 20,480 crores. This sell-off is attributed partly to the surge in US bond yields, reaching 4.16%, and partly to the high valuations in the Indian stock market.

Based on data from the National Securities Depository Limited (NSDL), the total FPI investment through stock exchanges as of January 13 stands at Rs 2,743 crores, as conveyed by Vijayakumar.

The report highlighted that FPI into India concluded at $28.7 billion in the previous calendar year. It noted the outperformance of the equity segment and observed an encouraging trend in the debt segment, especially in the latter part of the year.

Out of this substantial allocation, around Rs 35,000 crore will be dedicated to cruise vessels, while Rs 10,000 crore is earmarked for the development of cruise terminal infrastructure by the year 2047.