New Delhi: Foreign investors have dumped over Rs 39,000 crore in Indian equities so far this month as foreign investors continued their sell-off amid rising US bond yields, a firming dollar and prospects of a more aggressive rate hike by the Federal Reserve. .
With this, the net outflow by foreign portfolio investors ,FPI) has reached Rs 1.66 lakh crore from equity so far in 2022.
Going forward, according to Shrikant Chauhan, Head-Equity Research (Retail), FPI inflows into India are likely to remain volatile, in the context of rising crude oil prices, inflation and tight monetary policy. Kotak Securities,
“Recently, selling by FPIs is a sign of exhaustion, and domestic institutional investors (DIIs) and retail buyouts are emerging as a strong counter to FPI selling.
VK Vijayakumar, chief investment strategist, said, “At higher levels, FPIs may continue to sell. If global markets are stable, FPI sales will be easily absorbed by DIIs and retail buying.” Geojit Financial Services,
Foreign investors remained net sellers for the seven months to April 2022, drawing a massive Rs 1.65 lakh crore from equities.
FPIs turned net investors in the first week of April as markets plunged and infused Rs 7,707 crore in equities.
However, after a short breath, they became net sellers once again in the following weeks.
Data from the depositories shows that FPIs have dumped equities of a net Rs 39,137 crore during May 2-27. There are still two trading sessions left in the month.
Vijayakumar said, “Concerns related to the possibility of recession in the US due to higher valuations in India, rising bond yields in the US, strengthening of the dollar and aggressive tightening are the factors behind the withdrawal of FPIs.
Morningstar India associate director-manager research Himanshu Srivastava said investors are also wary of fears that high inflation could hamper corporate profits and impact consumer spending.
These factors, along with the continuation of the war between Russia and Ukraine, could further distort global economic growth.
He said that on the domestic front too, with inflation rising, there are concerns over further rate hikes by the RBI and its impact on economic growth.
Selling by FPIs continued in the month. However, the week closed on a positive note. One reason for this is that global markets took negative US GDP numbers in their stride and moved higher. Debris was seen in Indian markets especially in the last two days of the week Vijay SinghaniaPresident, tradesmart,
Apart from equities, FPIs pulled out a net amount of about Rs 6,000 crore from the debt market during the period under review.
Apart from India, other emerging markets including Taiwan, South Korea, Indonesia and Philippines have also witnessed outflows in the month of May so far.
With this, the net outflow by foreign portfolio investors ,FPI) has reached Rs 1.66 lakh crore from equity so far in 2022.
Going forward, according to Shrikant Chauhan, Head-Equity Research (Retail), FPI inflows into India are likely to remain volatile, in the context of rising crude oil prices, inflation and tight monetary policy. Kotak Securities,
“Recently, selling by FPIs is a sign of exhaustion, and domestic institutional investors (DIIs) and retail buyouts are emerging as a strong counter to FPI selling.
VK Vijayakumar, chief investment strategist, said, “At higher levels, FPIs may continue to sell. If global markets are stable, FPI sales will be easily absorbed by DIIs and retail buying.” Geojit Financial Services,
Foreign investors remained net sellers for the seven months to April 2022, drawing a massive Rs 1.65 lakh crore from equities.
FPIs turned net investors in the first week of April as markets plunged and infused Rs 7,707 crore in equities.
However, after a short breath, they became net sellers once again in the following weeks.
Data from the depositories shows that FPIs have dumped equities of a net Rs 39,137 crore during May 2-27. There are still two trading sessions left in the month.
Vijayakumar said, “Concerns related to the possibility of recession in the US due to higher valuations in India, rising bond yields in the US, strengthening of the dollar and aggressive tightening are the factors behind the withdrawal of FPIs.
Morningstar India associate director-manager research Himanshu Srivastava said investors are also wary of fears that high inflation could hamper corporate profits and impact consumer spending.
These factors, along with the continuation of the war between Russia and Ukraine, could further distort global economic growth.
He said that on the domestic front too, with inflation rising, there are concerns over further rate hikes by the RBI and its impact on economic growth.
Selling by FPIs continued in the month. However, the week closed on a positive note. One reason for this is that global markets took negative US GDP numbers in their stride and moved higher. Debris was seen in Indian markets especially in the last two days of the week Vijay SinghaniaPresident, tradesmart,
Apart from equities, FPIs pulled out a net amount of about Rs 6,000 crore from the debt market during the period under review.
Apart from India, other emerging markets including Taiwan, South Korea, Indonesia and Philippines have also witnessed outflows in the month of May so far.