FPIs turn net sellers in January, offload ₹24,734 crore in Indian equities: Why did they snap buying streak?
₹24,734 crore worth of Indian equities and the total outflow stands at ₹9,663 crore as of January 25, taking into account debt, hybrid, debt-VRR, and equities, according to National Securities Depository Ltd (NSDL) data. "FPIs continued to be sellers in the cash market having sold equity worth ₹27664 crores through 25th January. FPIs were sellers in autos and auto ancillary, media and entertainment and marginally in IT.
They bought in oil and gas, power and selectively in financial services,'' said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services. Foreign institutional investors (FIIs) also emerged net sellers for all sessions last week with a total divestment of ₹12,194.38 crore, while domestic institutional investors bought for three out of six sessions with a total investment of ₹9,701.46 crore.
Market experts also said that the FPI strategy of pushing the market down is not working since their selling is countered with buying by domestic and individual investors. FPIs snapped their buying streak over global cues as the US bond yields rose from 3.9 per cent to 4.18 per cent, triggering capital outflows from emerging markets such as India, according to market experts. ‘’The rising bond yields in the US is a matter of concern and this has triggered the recent bout of selling in the cash market.
The rally in global stock markets was triggered by the Fed pivot which saw the 10-year bond yield falling from five per cent to around 3.8 per cent. Now the 10-year is back at 4.18 per cent which indicates that the Fed rate cut will come only in H2 of 2024,'' added Dr. V K Vijayakumar.
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