Turn net sellers after 3 years; rising rates, recession fears to blame; Sensex still up 4.8% YTD
Prior to this, foreign investors pulled out Rs 8 crore in October and Rs 7,624 crore in September, data with the depositories showed
The biggest decline in two months; FPIs sell shares worth Rs 711 cr
After investing over Rs 36,200 crore last month, foreign investors continued their positive momentum and infused Rs 4,500 crore in the Indian equity markets so far in December, mainly due to the decline in the dollar index. However, foreign portfolio investors (FPIs) turned sellers in the last four trading sessions and pulled out Rs 3,300 crore as they are adopting a cautious stance ahead of the US Federal Reserve's decision on the interest rate. Going forward, in the near term, FPIs are likely to make only modest purchases in performing sectors and may continue to sell and book profits in sectors where they are sitting on big profits, VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said. More money is likely to move into cheaper markets like China and South Korea where the valuations are compelling now, he noted. "Even though India will continue to attract foreign capital the high valuations in India will be a deterrent," Vijayakumar added. According to
Sensex declines in 4 out of 5 sessions in the week, Nifty50 in 3 sessions
FPIs bought shares worth Rs 9,010 crore on Wednesday, according to provisional data from exchanges
According to experts, after remaining net sellers in August and September, Foreign Portfolio Investors (FPIs) are unlikely to be major sellers going forward
However, the timeline issue for many FPIs remains, as the relaxation still compels them to book forex during non-market hours
Conversely, Reliance Industries and Tata Consultancy Services saw the maximum FPI outflows at Rs 44,622 crore and Rs 17,838 crore, respectively
After declining for three consecutive quarters, the value of FPI investment in Indian equities rose 8 per cent quarter-on-quarter to USD 566 billion in the July-September period, according to a Morningstar report on Wednesday. A fast-changing global macroeconomic landscape, sentiments and opportunities that the Indian equity markets have to offer impacted the direction of flows by Foreign Portfolio Investors (FPIs). Through the quarter, the value of the FPI holdings domestic equities surged by 8 per cent to USD 566 billion from USD 523 billion recorded in the previous quarter. Further, the value of such investment was USD 612 billion in the March quarter and 654 billion in the quarter ended December 2021, as per the report. During the quarter ended September 2021, the value of FPI investments in Indian equities was USD 667 billion. Consequently, foreign investors' contribution to Indian equity market capitalisation also grew marginally during the quarter under review to 16.97 per
Indian currency at 1-month high on FPI flows, weak dollar
After withdrawing funds in the last two months, foreign investors came back strongly in the first week of November and infused Rs 15,280 crore in Indian equities
Foreign investors may switch to custodians backed by American banks for India exposure
US and European markets gained in October after a sharp sell-off in September
So far this year, the total outflow by FPIs in equities has reached Rs 1.70 trillion
Sustained selling by FPIs increases investment legroom to 22% at the end of September 2022 quarter
The flows from FPIs have been inconsistent over the last few months as they kept on changing their stance frequently tracking the fast-changing investment scenario
The selling dragged the BSE Financial Services index by 4.7 per cent in the last two weeks of September.
Looks at how market-wide position limits are calculated for commodity derivatives contracts
Close to breaking into top 10 countries by inflows