Mumbai: Foreign Portfolio Investors (FPIs) withdrew Rs Rs 4285 crore from Indian markets in 3 trading sessions in this month (January 1 to 3). This heavy selling was done because of concerns surrounding the upcoming third-quarter earnings season and the high valuations of domestic stocks. In the first three days of 2025 (January 1-3), foreign portfolio investors purchased Rs 25.02 crore through the ‘primary market and others’ category.
‘FPIs are likely to continue selling as long as the dollar remains strong and US bond yields offer attractive returns. The dollar index at around 109 and the 10-year bond yield above 4.5 per cent are significant deterrents to FPI flows,’ V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.
In the debt market (general limit) also, foreign investors sold Rs 1,111 crore on a net basis between January 1 and 3, the National Securities Depository Ltd (NSDL) data showed.
Also Read: Stock Market: Sensex, Nifty slips down sharply
In the previous calendar year (2024), FPI activity remained muted, as they pumped in Rs 427 crore on a net basis into the domestic equity market, a steep fall of 99.75 per cent from the robust inflows of Rs 1.71 lakh crore in 2023.
In the cash market, FPIs net sold Rs 1.21 lakh crore while investing Rs 1.22 lakh crore on a net basis through the primary market route in 2024..In December 2024, FPIs net sold equity for Rs 2,589.63 crore through exchanges and bought equity for Rs 18,036.13 crore through the primary market and others category.
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