Foreign portfolio investors on course to become net sellers again in November
F
oreign portfolio investors (FPIs) are on course to turn net sellers in Indian stock markets for the second straight month through November, after having remained net buyers four months on a trot until September.
So far in November, FPIs have sold stocks worth Rs 26,533 crore in India, National Securities Depository Limited (NSDL) data showed.
In October, they sold stocks worth Rs 94,017 crore, the highest-ever in a month's time.
In June, July, August, and September, they bought stocks worth Rs 26,565 crore, Rs 32,365 crore, Rs 7,320 crore, and Rs 57,724 crore, respectively.
FPIs had fuelled the bull run in the stock market, barring the latest slump. As per definition, Foreign Portfolio Investment (FPI) involves an investor buying foreign financial assets.
Sensex has fallen from its all-time high of 85,978 points, to now trading at 79,117 points. The recent sessions have been bearish for the indices, attributable to fund outflows and lower-than-expected Q2 earnings of India Inc, and high inflation.
"...the FII selling in India is likely to taper off soon. Also valuations of largecaps in India have come down from the elevated levels. FIIs have been buying IT stocks and this has been imparting resilience to IT stocks. Banking stocks have been resilient despite FII selling, mainly due to DII buying," said VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
Interestingly, at a time when overseas investors were net sellers in Indian equities, domestic institutional investors stayed net buyers, largely making up for the outflows by foreign investors. They accumulated stocks worth in thousands of crores more than FPIs in October, data showed. This has likely cushioned the stock indices from a further sharp fall.
✔️ Foreign portfolio investors on course to become net sellers again in November
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