FPI net sellers in September so far, sell ₹4,203 crore in Indian equities; When will buying resume?
Foreign portfolio investors (FPIs) have emerged as net sellers so far in September, with a muted performance on D-Street on rising US bond yields and a stronger dollar. FPIs have sold ₹4,203 crore worth of Indian equities and infused a total of ₹3,636 crore as of September 8, taking into account debt, hybrid, debt-VRR, and equities, according to National Securities Depository Ltd (NSDL ) data.
The ₹3,636 crore-figure also includes bulk deals and investment in primary market. Excluding the bulk deals and investment through the primary market, the sell figure in the cash segment rises to ₹8832 crore, according to analysts.
Rising bond yields in the US and strong dollar index are negative for capital flows. This was the primary reason why FPIs turned net sellers in the cash market this month.
Strength in the US dollar index and the US 10-year bond yield remaining high are short-term negatives for FPI flows to emerging markets like India, according to analysts. "Net FPI investment in September has turned negative…This trend reversal in FPI investment from buying in the last three months to selling in September is mainly due to the rising US bond yields and the uptrend in the dollar index,'' said Dr.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. MORE TO COME..Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!
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