FPIs offload ₹29,520 crore in Indian equities as sell-off continues in February: What's behind this trend?
₹29,520 crore so far in 2024. FPIs have sold ₹3,776 crore worth of Indian equities and the total inflow stands at ₹19,608 crore as of February 16, taking into account debt, hybrid, debt-VRR, and equities, according to National Securities Depository Ltd (NSDL) data. Foreign institutional investors (FIIs) were buyers for three out of five sessions last week, yet the total divestment stood at ₹6,240.55 crore, while domestic institutional investors (DIIs) were buyers for all five sessions, with a total investment of ₹8,731.6 crore, according to stock exchange data.
On a monthly basis, FIIs have sold shares in Indian markets to the tune of Rs. 14,171 crore between February 1-16, 2024. "The spike in US bond yields triggered by the higher-than-expected consumer price inflation led to sustained selling by FPIs in the cash market.
In February through 16th, FPIs had sold equity worth ₹6,112 crore through the exchange. But, buying through ‘the primary market and others’ reduces the net sell figure for February through 16th to ₹3,775 crore,'' said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
Also Read: FIIs offload ₹6,240.5 crore in Indian equities this week, DIIs turn net buyers; What's behind this trend? FPIs snapped their buying streak in early January over global cues as the US bond yields rose from 3.9 per cent to 4.24 per cent, triggering capital outflows from emerging markets such as India, according to market experts. ‘’The trend of FPI selling is likely to continue so long as the US bond yields remain elevated. The sustained FPI buying in debt which started early this year also continues.
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