In this Podcast i have talked about who are Fii's and why they are selling in indian markets currently.
Explanation of Key Financial Terms
1. Investment Banks
Investment banks are financial institutions that help companies and governments raise capital by underwriting stocks and bonds, advising on mergers and acquisitions, and providing financial services.
Example: Goldman Sachs, JPMorgan Chase, Morgan Stanley
2. Hedge Funds
Hedge funds are private investment funds that use aggressive strategies like leverage, derivatives, and short selling to generate high returns for wealthy investors and institutions.
Example: Bridgewater Associates, Citadel, Renaissance Technologies
3. Pension Funds
Pension funds manage retirement savings for employees and invest in stocks, bonds, and other assets to generate returns over time.
Example: Employees’ Provident Fund Organization (EPFO) in India, California Public Employees' Retirement System (CalPERS)
4. US Bond Yields
Bond yields refer to the returns investors earn from US Treasury bonds. When US bond yields rise, investors shift funds from emerging markets (like India) to US bonds, leading to FII outflows.
Example: The US 10-year Treasury yield rising to 5% attracts global investors.
5. USD/INR Rate Fluctuation
The USD/INR exchange rate represents how much 1 US dollar is worth in Indian rupees. It fluctuates due to FII inflows/outflows, inflation, interest rates, and geopolitical events.
Example: If FIIs pull out money from India, they convert INR to USD, increasing USD demand and depreciating the INR.
Would you like me to elaborate on any of these concepts? 🚀