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Foreign portfolio investors (FPIs) continued to offload Indian equities in the first-half of October, selling stocks worth 97.84 billion rupees ($1.17 billion) on a net basis, data from the National Securities Depository (NSDL) showed.

FPIs had snapped a six-month buying streak in September. The selloff in the first-half of October comes as U.S. Treasury yields hit fresh 16-year highs, making U.S. bonds more attractive than emerging markets like India, three analysts said.

"Consumer spending, retail sales are still strong in the U.S. That means rates are likely to be at higher levels for a longer period of time," said Gaurav Dua, senior vice president and head of capital market strategy at Sharekhan by BNP Paribas.

Geopolitical concerns due to the ongoing Middle East conflict have also added to the risk aversion in the markets and brought back inflationary fears, the analysts said.

Despite the FPI outflows, the benchmark Nifty 50 remained resilient, gaining 0.57% in the first-half of this month, helped by steady buying by domestic investors.

Equity mutual funds have seen inflows from domestic investors for 31 consecutive months, according to official data. Contributions through systematic investment plans (SIPs) - in which investors make regular payment into mutual funds - is at all-time highs.

WHAT FPIs SOLD IN THE FIRST-HALF OF OCTOBER

FPIs sold power, construction, information technology (IT) and financials.

The power sector, which saw outflows worth 97.31 billion rupees in September, witnessed FPI selloffs of 20.69 billion rupees.

Power stocks had FPI inflows worth 115.63 billion rupees in August due to robust demand.

The FPI selloff in IT stocks is driven by U.S. interest rate worries. IT companies earn a significant chunk of their revenue from the U.S.