FPIs offload ₹14,768 crore in Indian equities, turn net sellers in September; What led to trend reversal?
₹14,768 crore worth of Indian equities and offloaded a total of ₹13,810 crore as of September 29, taking into account debt, hybrid, debt-VRR, and equities, according to National Securities Depository Ltd (NSDL ) data. The ₹14,768 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 ₹26,689 crore, according to analysts. FPIs turned net sellers in the cash market this month because strength in the US dollar index and the US 10-year bond yield remaining high are short-term negatives for FPI capital flows to emerging markets like India, according to analysts.
High crude oil prices in the last week of September also weighed on FPIs market behavior. Foreign institutional investors (FIIs) have sold ₹25,000 crore in cash markets this month, according to analysts.
The US Treasury yields hit a 16-year high mark and crude oil prices almost touched $98 per barrel last week amid concerns over interest rates staying high for an extended period and its impact on the global economy. This has largely supported the FII selling streak since August.
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