Foreign Funds pulled off: Is Inflation the reason????

Foreign funds are being pulled from Indian equity market due to towering Inflation. The corporate margins are being decreasing due to rising prices. This Financial year RBI has increased interest rate seven times, however it is difficult to control double digit inflation rate. The reason is the inflation is due to the supply factors and worldwide/international prices (rising oil prices). Again the inflation can even be considered due to rise in purchasing power, which leads to increase in demand but there is decline in agri production compared to this.

As the global economy especially US economy seems to be sustainable the investors are trying to put money in US market along with commodity-heavy markets.

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