Mumbai: Foreign portfolio investors (FPIs) remained sellers in Indian markets in June first week. Volatility due to Lok Sabha elections 2024 and results, outperformance in Chinese markets, hawkish stance from central banks, and other global cues have weighed on the sentiments of foreign investors.
According to National Securities Depository Ltd (NSDL) data, FPIs offloaded Rs 14,794 crore worth of Indian equities and the total outflow stands at Rs 10,355 crore as of June 7, taking into account debt, hybrid, debt-VRR, and equities. The total debt inflows stand at Rs 4,008 crore in the first week of June.
‘In May FPIs sold equity for Rs 25,586 crore. In the cash market the selling has been excessive and sustained. For CY2024, so far, FPIs have sold equity for Rs 23,363 crore. A significant trend in the FPI activity is the huge selling through exchanges and buying through the primary market route,’ said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
Foreign institutional investors (FIIs) remained net sellers last week, offloading approximately Rs 13,718 crore in the cash segment. Conversely, the domestic institutional investors (DIIs) continued their buying spree with net purchases amounting to nearly Rs 5,579 crore in the cash segment.
Also Read: Eid Al Adha 2024: Emirates in UAE announces holidays for employees
In May 2024, FPIs offloaded Rs 25,586 crore worth of Indian equities, and the debt inflows stood at Rs 8,761 crore. FPIs offloaded Rs 8,671 crore in Indian equities in April and Rs 10,949 crore in debt markets. However, they pumped Rs 35,098 crore in Indian equities during March 2024 – the highest inflows recorded in the first three months of 2024.
The inflow into Indian equities stood at Rs 1,539 crore in February 2024 and the debt market investment rose to Rs 22,419 crore during the month on top of the Rs 19,836 crore bought in January.
For the entire calendar year 2023, FPIs bought Rs 1.71 lakh crore in Indian equities and the total inflow stands at Rs 2.37 lakh crore taking into account debt, hybrid, debt-VRR, and equities. FPIs’ net investment in Indian debt market stands at Rs 68,663 crore during 2023.
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.
Post Your Comments