General Elections 2024 Results Tomorrow: Will FPI trend shift in June? Experts weigh in as exit polls predict NDA win
₹25,586 crore, leading to a total outflow of ₹12,911 crore when considering debt, hybrid, debt-VRR, and equities, according to data from the National Securities Depository Ltd (NSDL). Despite this, FPIs maintained their status as net buyers in the Indian debt market, with total inflows amounting to ₹8,761 crore in May 2024.The selling in May also comes on the back of high volatility in the Indian market during the month. The benchmarks fell sharply in the first half of the month on the back of FPI selling, rise in US bond yields, and uncertainty of the election results.
However, they recovered in the second half with the benchmarks hitting new peaks and key levels as the hopes of a Modi win grew stronger. Overall, the Nifty fell 0.33 percent during the month of May."FPIs have been sellers in equity on most trading days in May. As per NSDL data FPIs have sold equity for ₹25586 in May.
The selling in the cash market till the 30th has been excessive at ₹43,827 crore. The main trigger for the FPI selling has been the outperformance of the Chinese stocks. The Hang Seng index boomed 8 percent in the first half of May triggering selling in India and buying in Chinese stocks.
Another reason was the spike in US bond yields. Whenever the US 10-year bond yields rose above 4.5 percent FPIs sold in emerging markets like India and moved money to bonds, these two factors triggered the selling of equity in India." said Dr V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.Moreover, the selling of Indian equities by the FPIs in May surged significantly compared to the net outflow of over ₹8,700 crore observed in April. This heightened activity was driven by concerns surrounding a potential adjustment in India's tax
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