Mumbai: Foreign portfolio investors (FPIs) pulled out a massive Rs 94,017 crore (around $11.2 billion) from the Indian stock market in October. October 2024 is the worst-ever month in terms of foreign fund outflows. Before this, foreign portfolio investors (FPIs) withdrew Rs 61,973 crore from equities in March 2020. As per market experts, the elevated valuation of domestic equities and attractive valuations of Chinese stocks influenced investors.
According to the data, except for one day, FPIs were net sellers throughout the month, bringing their total investment for 2024 down to Rs 6,593 crore. The NSE Nifty and BSE Sensex experienced significant declines of 6.22% and 5.83%, respectively, last month, marking their worst monthly performance since March 2020. This is the worst monthly performance for Indian front-line indices in over four years.
In addition, FPIs pulled out Rs 4,406 crore from the debt general limit and invested Rs 100 crore from the debt Voluntary Retention Route (VRR) during the period under review. So far this year, FPIs invested Rs 1.06 lakh crore in the debt market.
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The latest outflow came after a nine-month high investment of Rs 57,724 crore in September 2024. Since June, FPIs have consistently bought equities after withdrawing Rs 34,252 crore in April-May. Overall, FPIs have been net buyers in 2024, except for January, April and May.
Meanwhile, the domestic institutional investors (DIIs) purchased Rs 1.07 lakh crore worth of Indian stocks in October.
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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