Mumbai: Foreign portfolio investors (FPIs) resumed their selling streak in January after turning net buyers in December. So far this month, FPIs have sold nearly Rs 12,000 crore worth of Indian stocks through exchanges.
During October and November, FPIs withdrew nearly Rs 1.60 lakh crore from Indian equities. Overall, FPIs investment in equities remained positive in 2024, but it declined around 99 per cent as compared to 2023.
This significant selling by FPIs has brought their share in Indian equities to 16.1% in December 2024. This is a 12-year low. During the same period in 2023, FPIs held a 16.8% share in Indian equities.
As of December 2024, FPI Equity Assets Under Custody (AUC) stood at Rs 71.1 trillion, lower than Rs 71.9 trillion in November 2024.
Also Read: Inflow into equity mutual funds in India rose 14% in December
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.
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.
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