 "Heavy buying: Record FPI outflows cross $8.5 bn this month, shows data")
This month is proving to be the worst-ever month in terms of outflows from foreign portfolio investors (FPIs). Overseas funds have pulled out $8.5 billion (Rs 71,441 crore) from domestic stocks, triggering a 4 per cent fall in the Nifty 50 index. During the peak of Covid-19 selloff in March 2020, FPI outflows had stood at $7.9 billion (Rs 58,632 crore). The blow from overseas selling has been cushioned by strong inflows from domestic institutional investors (DIIs), mainly mutual funds (MFs). DIIs inflow this month largely match the selling by FPIs.
This mirrors the trend seen during months of highest FPI selling such as June, May and February of 2022. Notably, net buying by DIIs on a year-to-date basis has topped a record Rs 4 trillion so far this calendar year. Previously, record high DII flows for a calendar year were in 2022 when they had pumped in Rs 2.8 trillion, of which Rs 1.86 trillion came from MFs.