FPIs turn aggressive sellers on market crash; offload ₹17,083 crore in Indian equities: When will buying resume?
₹17,083 crore worth of Indian equities and the total outflow stands at ₹16,797 crore as of May 10, taking into account debt, hybrid, debt-VRR, and equities, according to National Securities Depository Ltd (NSDL) data. The total debt outflows stand at ₹1,602 crore so far this month. Analysts noted that foreign investors will remain sellers in Indian markets given the delays in the interest rate cuts, inflationary concerns, moderation in corporate earnings, and premium valuation.
The selling pressure on majority of indices has led to a rise in volatility index ‘India VIX’ in the past few sessions. Foreign institutional investors (FIIs) are on a selling spree in Indian markets with the total outflows nearing ₹25,000 crore in May 2024. FIIs have offloaded ₹24,975.5 crore within the first seven market sessions so far in May 2024.
Domestic institutional investors (DIIs) were net buyers for all sessions, with a total investment of ₹19,410 crore, according to stock exchange data. Analysts said that high quality largecaps have turned weak now due to the bulk selling by FIIs. ‘’There is aggressive selling by FPIs in May…The selling by FIIs in the cash market is much higher than this at ₹24,975 crore.
The divergence in institutional activity is becoming stark this month. FIIs have turned sustained sellers and DIIs have turned sustained buyers in all trading days of this month,'' said analysts at Geojit Financial Services. From the data showing sharper declines in the broader market, it appears that HNIs and retail investors have booked some profits and are in a wait and watch mode, perhaps responding to the noise relating to uncertainty regarding the election results, according to analysts.
Read more on livemint.com
