Archive · 18 Sep 2026
Fed Hike Tests Domestic Buying as Foreign Sellers Pressure Markets
A Federal Reserve interest-rate hike is testing the strength of domestic market participants.
Markets are questioning whether domestic buyers can maintain their support.
Foreign investors are selling while domestic investors continue buying, according to the report.
Aggregate buying figures may obscure differences in which stocks investors are trading.
Rajesh Singla said the key issue is where money is being invested, not simply its total amount.
- Who
- Domestic buyers, foreign sellers, and Rajesh Singla, chief executive and fund manager at Alpha AMC.
- What
- A Federal Reserve rate hike is testing whether domestic buying can support markets despite foreign selling.
- Why
- Domestic and foreign investors may be directing money into different stocks, making the location of investment more important than aggregate totals.
Domestic Market Support
Foreign Selling Pressure
Market resilience
Domestic Market Support
Domestic buying may help markets hold their ground after the Fed hike.
Foreign Selling Pressure
Foreign selling could continue to pressure markets despite domestic purchases.
Interpreting market flows
Domestic Market Support
Aggregate buying may suggest that domestic investors are providing meaningful support.
Foreign Selling Pressure
Aggregate figures may conceal weakness because buyers and sellers may be trading different stocks.
- Market factor
- A Federal Reserve interest-rate hike is testing market support.
- Domestic investors
- Domestic buyers are contributing to market buying.
- Foreign investors
- Foreign investors are selling.
- Key distinction
- Domestic buyers and foreign sellers may not be trading the same stocks.
- Analyst view
- Rajesh Singla said the divergence depends on where money is landing, not just how much is moving.