FIIs to make $16 billion if market goes up 2% on Monday: Samir Arora

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Why did FPIs dump ₹25,586 crore worth of Indian shares in May—Explained with 4 key reasonsArora further added that the FII category does not get squeezed generally. “FII as a category does not get squeezed- except some individual fund here or there (which happens all the time)," he said.The sentiments of foreign investors have been impacted by the volatility stemming from the Lok Sabha elections in 2024, a more aggressive stance taken by global central banks, the strong performance of Chinese markets, and various other global indicators.FPIs divested Indian equities valued at ₹25,586 crore, with a total outflow reaching ₹12,911 crore by May 31, encompassing debt, hybrid, debt-VRR, and equities, as per data from the National Securities Depository Ltd (NSDL).

Concurrently, debt inflows for May 2024 amount to ₹8,761 crore.FPIs are likely to turn buyers in June if the election results ensure political stability, according to V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.“Another reason was the spike in US bond yields. Whenever the US 10-year bond yields rose above 4.5 % FPIs sold in emerging markets like India and moved money to bonds.

These two factors triggered the selling of equity in India. FPI activity in June will be crucially influenced by the election results to be announced on June 4th and the market response to that.

If the election results ensure political stability the market is likely to respond positively to that. FPIs also are likely to turn buyers in such a scenario.