Foreign investors withdrew nearly Rs 14,800 crore from domestic stocks in the first week of this month, influenced by India's Lok Sabha election results and attractive valuations of Chinese stocks. The outflow came following a net outflow of Rs 25,586 crore in May on poll jitters and more than Rs 8,700 crore in April on concerns over a tweak in India's tax treaty with Mauritius and a sustained rise in US bond yields. Before that, FPIs made a net investment of Rs 35,098 crore in March and Rs 1,539 crore in February, while they took out Rs 25,743 crore in January, data with the depositories showed. From a medium to long-term perspective, the direction of interest rates will remain a key driver for foreign investment flows into the Indian equity markets. According to the data, Foreign Portfolio Investors (FPIs) made a net withdrawal of Rs 14,794 crore this month (till June 7). The general election results in India significantly influenced foreign investor flows in Indian equity marke
FPIs sold stocks in consumer staples, financials and information technology sectors in April 2024
Foreign investors pulled out a massive Rs 17,000 crore from Indian equities in the first 10 days of the month owing to general election and the uncertainty surrounding its outcome coupled with expensive valuations and profit booking. This was way higher than a net withdrawal of Rs 8,700 crore in the entire April on concerns over a tweak in India's tax treaty with Mauritius and a sustained rise in US bond yields. Before that, FPIs made a net investment of Rs 35,098 crore in March and Rs 1,539 crore in February. Looking ahead, post-general elections, corporate India's strong financial performance in Q4 FY24 is anticipated to be rewarded. While FPIs may adopt a cautious stance until the election results are clear, favourable outcomes and established political stability could see their return in significant numbers, Trivesh D, COO at Tradejini, said. According to the data with the depositories, Foreign Portfolio Investors (FPIs) experienced a net outflow of Rs 17,083 crore in equities
Apart from the bond yields and geopolitical crisis, another trigger for FPI selling was the tweak in India's tax treaty with Mauritius, which would now impose higher scrutiny on investments
Foreign portfolio investors (FPIs) have withdrawn over Rs 12,000 crore from Indian equities this month so far, mainly due to a sustained rise in US bond yields and the uncertain environment resulting from the Israel-Hamas conflict. However, the story takes an intriguing turn on observing FPI activity in Indian debt as they have infused over Rs 5,700 crore into the debt market during the period under review, data with the depositories showed. Going ahead, the trajectory of FPIs' investments in India will be influenced not only by global inflation and interest rate dynamics but also by the developments and intensity of the Israel-Hamas conflict, Himanshu Srivastava, Associate Director - Manager Research, Morningstar Investment Adviser India, said. Geopolitical tensions tend to elevate risk, which typically hurts foreign capital inflows into emerging markets like India, he added. According to the data with the depositories, foreign portfolio investors (FPIs) sold shares worth Rs 12,14
Foreign Portfolio investors (FPIs) have dumped Indian equities worth Rs 8,000 crore in the first week of October on the back of dollar appreciation and the steady rise in the US bond yields. This came after FPIs turned net sellers in September and pulled out Rs 14,767 crore. Before the outflow, FPIs were incessantly buying Indian equities in the last six months from March to August and brought in Rs 1.74 lakh crore during the period. Going ahead, FPIs are unlikely to turn buyers in the market soon in the context of the elevated dollar and US bond yields, V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said. According to the data with the depositories, Foreign Portfolio Investors (FPIs) sold shares to the tune of Rs 8,000 crore in this month (till October 6). India continues to be on top of emerging economies in attracting FPI this year, but September witnessed selling and October has begun with the same trend. "The dominant factor impacting capital flows
Foreign Portfolio Investors (FPIs) have pulled out over Rs 10,000 crore from Indian equities in the first three weeks of September, primarily due to rising US interest rates, recessionary fears, and overvalued domestic stocks. Before the outflow, FPIs were incessantly buying Indian equities in the last six months from March to August and brought in Rs 1.74 lakh crore during the period. Mayank Mehra, smallcase, manager and principal partner at Craving Alpha,believes that strong economic growth prospects, attractive valuations, and government reforms could support foreign investment flows in the next month. "Since valuations remain high even after the recent pullback and US bond yields are attractive (the US 10-year bond yield is around 4.49 per cent) FPIs are likely to press sales so long as this trend persists," V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said. According to the data with depositories, in the 15 trading days, so far in September, FPIs
Trailing 12-month FPI flows currently at $7.3 billion-most since November 2021
Strong flows into domestic banks even as their developed world counterparts reeled under pressure was underpinned by improved outlook
The domestic currency closed at 82.18 per US dollar as against 81.93 per dollar on Wednesday
Weak US consumer data and hawkish comments from the Fed's policymakers hammered investor risk appetite
FPI outflows, likely RBI dollar purchases weigh on domestic currency
In a highly volatile trade, equity benchmarks ended on a flat note on Wednesday amid unabated foreign fund outflows and a weak trend in index heavyweight Reliance Industries. Continuing its previous day decline, the 30-share BSE Sensex dipped 9.98 points or 0.02 per cent to settle at 60,105.50. During the day, it declined 309.7 points or 0.51 per cent to 59,805.78. The broader NSE Nifty skidded 18.45 points or 0.10 per cent to end at 17,895.70. From the Sensex pack, Bharti Airtel, Hindustan Unilever, Titan, Reliance Industries, Nestle, IndusInd Bank, Bajaj Finserv and NTPC were the major laggards. Sun Pharma, UltraTech Cement, Tata Motors, Larsen & Toubro, Tata Consultancy Services, HDFC Bank and Tata Motors were among the winners. "The biggest drag on the market in the near-term is the sustained selling by FIIs for 13 continuous sessions, which has taken the cumulative cash market selling to Rs 16,587 crore," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial .
After three consecutive years of infusing huge funds, foreign portfolio investors retreated from the Indian equity markets in a big way in 2022 with the highest-ever yearly net outflow of nearly Rs 1.21 lakh crore. The huge outflow, which surpasses by a big margin the previous record of Rs 53,000 crore net withdrawal in 2008, came amid aggressive rate hikes by central banks globally but 2023 is expected to be better on positivity about overall macroeconomic trends in India, experts said. Apart from global monetary tightening, volatile crude, rising commodity prices along with Russia and Ukraine conflict led to an exodus of foreign money in 2022. Going ahead, the quantum of FPI outflows might not be as large as that seen in the first half of 2022 as India's growth is relatively promising compared to other developed and emerging economies, said Manish Jeloka, Co-head of Products and Solutions, Sanctum Wealth. Sanjiv Bajaj, Joint Chairman and MD of Bajaj Capital, said that FPI flows i
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Indian currency at 1-month high on FPI flows, weak dollar
The rupee settled at 82.44 per dollar on Friday versus 82.89 on Thursday
If not for inflows from India-dedicated funds, the FPI outflow tally in September would have crossed $2 billion.
FPIs offloaded nearly Rs 2 trillion ($265 billion) in Indian equities during Samvat 2078, data show.
The latest reading is well below this year's average of 20.7. Moreover, Monday's 8.8 per cent advance is only the 10th largest seen this year