Rs 10,000 crore-erosion! FPI sell-off continues in October. What's in store for rest of the month
foreign investors continued through the month of October as they pulled out about Rs 10,000 crore so far.
As per NSDL data, FPIs sold equity for Rs 13,652 crore through the stock exchanges till October 13, but invested Rs 3,868 crore through the primary market, making them net sellers in the month so far.
Sustained rise in US bond yields in anticipation of further rates and uncertain geopolitical environment have been the main contributing factors for FII offloading Indian shares.
The selling was seen in financials, power, and IT, but they continued to buy capital goods and automobiles.
In September, FPIs net sold shares worth a whopping Rs 30,000 crore in eight sectors, while investments worth over Rs 1,000 crore were made only in four sectors.
Overall, the total investment by FPIs in equity has reached Rs 1.1 lakh crore and over Rs 33,000 crore in the debt market this year so far.
Analysts said the Indian market continues to exhibit resilience even amid many challenges and that investors may turn optimistic in the near future.
«India, with its strong macro fundamentals, seems to be a place where people want to continue to stay invested. So, we believe that the pace of selling of the FPIs, especially in banks, is coming off,» said Unmesh Sharma of HDFC Securities.
«There is a growing concern among FPIs, that if they continue to sell, they will miss out on the potential rally in the Indian market.
This might restrain the FPIs from selling heavily in the coming days,» said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
«However, if the Israel-Hamas conflict widens and crude shoots up, they might continue to sell. The level of uncertainty is high,» he added.
Meanwhile, domestic
