Mumbai: Foreign Portfolio Investors (FPIs) sold shares to the tune of Rs 9,784 crore this month (till October 13). According to market experts, the sustained rise in US bond yields and the uncertain environment resulting from the Israel-Hamas conflict are the main reason for this.
FPIs turned net sellers in September and pulled out Rs 14,767 crore. From March to August, FPIs invested Rs 1.74 lakh crore in Indian equities. This inflow was largely due to the reduction in US inflation from 6% in February to 3.2% in July.
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On the other hand, FPIs invested Rs 4,000 crore in the country’s debt market during October. With this, 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. In terms of sectors, FPIs continued to sell in financials, power, and IT, however, they continued to buy capital goods and automobiles.
Foreign institutional investors (FII) or Foreign portfolio investors (FPI) are those who invest in the financial assets of a country while not being part of it. On the other hand, Domestic Institutional Investors (DII) are those who invest in the country they are living in. Both types of investors can impact the economy’s net investment flows.
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