Mumbai: Foreign portfolio investors (FPIs) have withdrawn over Rs 12,146 crore from Indian equities this month so far(till October 20). As per 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. Meanwhile, FPIs invested over Rs 5,700 crore into the debt market during the period under review.
FPIs turned net sellers in September and pulled out Rs 14,767 crore. Before the outflow, FPIs were incessantly buying Indian equities in the last six months — from March to August. FPIs bought shares worth Rs 1.74 lakh crore during that period. With this, the total investment by FPIs in equity has reached Rs 1.08 lakh crore and close to Rs 35,000 crore in the debt market this year so far.
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In terms of sectors, FPIs have been selling across the board in sectors like financials, power, FMCG and IT, while purchasing was subdued in automobiles and capital goods.
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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