In the last six months, the S&P BSE Sensex and the Nifty have slumped around 7 per cent each as foreign investors dumped Indian stocks across the board
Equity inflows over the last three years from 2019-2021, according to a note by BofA Securities, totaled over $40 billion, out of which nearly $14 billion has left in the first quarter of 2022
And the March outflows were the most severe since March 2020 after the pandemic hit the world
The exodus of foreign investors was largely owing to inflationary pressures and deepening global macroeconomic conditions following the Russia-Ukraine war, experts said
Foreign portfolio investors exited India in droves and have sold stocks since October 2021 amid fears of an earlier and faster-than-expected rate hike by the US Federal Reserve (US Fed)
Foreign portfolio investors (FPIs) remain uncomfortable with India's valuation premium and have sold about $20 billion since October
Selling accelerated after Russia attacked Ukraine in February and caused a spike in global commodity prices
Our 10 mean reversion scenarios put the Nifty50 December 2022 target at an average of 17,500, said Jefferies
But they have invested over Rs 53,000 cr in the primary market, indicating investors have been reallocating their holdings without bringing in much fresh capital
This is thanks to economic revival, improving upgrades to downgrades ratio, say experts
Covid-19, US yields, dollar to weigh on equity flows in the near term
According to the depositories data, a net Rs 3,510 crore was withdrawn from equities, while Rs 1,472 crore was pumped into debts by FPIs between September 1-11
FPIs remain positive on Indian markets; invest Rs 41,330 cr in Aug so far
While net FPI slows for the initial two months were positive, FPI selling was seen accelerating in the subsequent two months
Of the total 50 companies from the Nifty index, FPIs has reduced their holdings in 45 companies during the recently concluded quarter
Between April 1-24, foreign portfolio investors (FPI) pulled out a net sum of Rs 6,822 crore from equities and Rs 3,525 crore from the debt segment, depositories data showed
Global index provider was expected to hike the weight after Centre's decision to virtually increase investment limit for overseas investors in domestic firms
While a coordinated aggressive monetary easing from the central banks is most likely to offer some respite in the near-term, it is unlikely to improve the sentiments
Sensex fell 336 points, or 0.82 per cent, to end at 40,794; Nifty closed at 12,056, down by 95 points or 0.8 per cent
Despite the 3 per cent gain in September 2019, the FPI sell-off during the quarter has seen the benchmark indices register negative returns in Q3CY19