FPIs offload ₹5,254 crore in Indian equities on high US bond yields, turn net sellers in debt markets

livemint.com:

₹5,254 crore worth of Indian equities and the total outflow stands at ₹8,982 crore as of April 19, taking into account debt, hybrid, debt-VRR, and equities, according to National Securities Depository Ltd (NSDL) data. The total debt outflows stand at ₹6,174 crore so far this month. ‘’FPIs sold equity worth ₹16,452 crore through exchanges.

This kind of big selling happens whenever the US bond yields spike beyond expectations,'' said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services. Also Read: Dividend Stocks: ICICI Securities Ltd, Aster DM Healthcare, among others to trade ex-dividend next week; check full list In April through 19th FPIs have sold equity for ₹13,546 crore.

The hotter-than-expected US inflation and the consequent spike in bond yield (the 10-year rising above 4.6 per cent) led to big selling in the Indian cash market. ‘’Now, the total FPI flow for April stands dwindled to ₹5,639 crore. It was the FPI investment through the primary market of ₹22,092 crore which enabled the total equity flows to touch ₹5,639 crore, ‘’ said Dr.

V K Vijayakumar. A major trend in FPI activity this month is that FPIs have turned sellers into debt after sustained buying for several months. In April through 20th FPIs sold debt worth ₹12,885 crores.

This again is the consequence of the rising US bond yields and the concern regarding rupee depreciation. Coming to portfolio changes by the FPIs, this month FPIs have been big sellers in IT in anticipation of poor Q4 results. They were also sellers in FMCG and consumer durables.