FPIs’ Net Outflow

Why have FPIs turned negative on India?

After three years of aggressive buying, foreign portfolio investors slammed brakes in 2022 and withdrew Rs 1.21 trillion from the Indian stock markets. Why have FPIs turned negative on India in 2022?

Aggressive rate hike by the US Federal Reserve, coupled with elevated inflation and high valuation of equities continued to keep foreign investors at bay from the Indian stock market

Net outflow by foreign portfolio investors (FPIs) from equities reached at Rs 1.69 trillion so far in 2022.

Continuing their selling spree for the sixth straight month, overseas investors have pulled out a net Rs 45,608 crore from the Indian markets in March so far

A trend reversal was witnessed in the debt segment in October from the big buying in the previous two months when FPIs had invested Rs 13,363 crore in September and Rs 14,376.2 crore in August

In the previous month, FPIs were net buyers to the tune of Rs 24,053 crore

The latest withdrawal has come after investment of Rs 24,053 crore by FPIs in domestic markets in June

The selling was far less intense in India with foreign portfolio investors (FPIs) offloading shares worth only $400 million

According to Securities and Exchange Board of India annual report, eligibility norms for FPIs were relaxed and data privacy concerns of FPIs were addressed

Marketmen believe that 2018 would not be same when it comes to investment by FPIs as "withdrawal of liquidity and rate hikes in developed economies pick up

According to recently released data, India's fiscal deficit rose to 96.1 per cent of the full-year target by the end of October