FPIs’ Net Outflow

Foreign investors turned net sellers in October, offloading shares worth Rs 27,142 crore in just the first three days of October due to intensifying conflict between Israel and Iran, a sharp rise in crude oil prices, and improved performance of Chinese markets. The outflow came after FPI investment reached a nine-month high of Rs 57,724 crore in September. Since June, Foreign Portfolio Investors (FPIs) have consistently bought equities after withdrawing Rs 34,252 crore in April-May. Overall, FPIs have been net buyers in 2024, except for January, April, and May, data with the depositories showed. Looking ahead, global factors like geopolitical developments and the future direction of interest rates will play a crucial role in determining the flow of foreign investments into the Indian equity markets, Himanshu Srivastava, Associate Director, Manager Research, Morningstar Investment Research India, said. According to the data, FPIs made a net withdrawal of Rs 27,142 crore from equitie

Foreign investors have pulled out a massive Rs 28,200 crore from Indian equities so far this month, owing to uncertainties about the outcome of the general elections and attractive valuations of Chinese markets. The withdrawal was way higher than a net pullout of over 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. Going forward, there is likely to be a dramatic change in foreign portfolio investors' (FPIs) equity flows in response to election results. Political stability will attract huge inflows in the Indian market, VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said. Following the Lok Sabha elections, FPI inflows into India could strengthen due to three key factors -- potential easing of interest rates by the US Federal Reserve, positive resolutions in global geopolitical tensi

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

Foreign Portfolio Investors (FPIs) continued their bullish stance on the country's debt markets with a net infusion of over Rs 15,000 crore so far this month, on the back of inclusion of Indian government bonds in the JP Morgan Index along with relatively stable economy. This followed a net investment of Rs 19,836 crore in January, making it the highest monthly inflow in more than six years. This was the highest inflow since June 2017, when they infused Rs 25,685 crore. On the other hand, foreign investors pulled out more than Rs 3,000 crore from equities during the period under review. Before this, they withdrew a massive Rs 25,743 crore in January, data with the depositories showed. "The main trigger for this divergent trend in equity and debt is the high valuation in the Indian equity market and the rising bond yields in the US," V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said. Himanshu Srivastava, Associate Director - Manager Research, Morningstar

Foreign Portfolio Investors (FPIs) have pulled out over Rs 20,300 crore from Indian equities this month so far, primarily due to a sharp surge in the US treasury yield, 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 Rs 6,080 crore into the debt market during the period under review, data with the depositories showed. Going ahead, the future of FPI flows hinges on several factors, including the US Federal Reserve's November 2 meeting and global economic developments, Mayank Mehraa, smallcase manager and principal partner at Craving Alpha, said. In the short term, FPIs are expected to remain cautious amid global uncertainty and increasing US interest rates. Nonetheless, India's strong economic growth prospects should maintain its appeal for foreign investors in both equities and debt, he added. According to the data with the depositories, Foreign Portfoli

After sustained buying in the last six months, FPIs have turned net sellers and pulled out of over Rs 14,767 crore from Indian equities in September, primarily due to dollar appreciation, steady rise in the US bond yields, and a spike in crude oil prices. Going forward, the outlook for FPI flows in India is uncertain, as it will depend on the performance of the Indian economy, the RBI's October monetary policy, and the outcome of the September quarter earnings, Mayank Mehra, smallcase, manager and principal partner at Craving Alpha, said. According to data with the depositories, Foreign Portfolio Investors (FPIs) have sold shares to the tune of Rs 14,767 crore in September. The latest outflow came after FPI investment in equities had hit a four-month low of Rs 12,262 crore in August. 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. V K Vijayakumar, Chief Investment ...

Foreign portfolio investors (FPIs) infused Rs 11,630 crore in the Indian equity markets in April on the reasonable valuation of stocks and appreciation in the rupee. This came after FPIs infused a net sum of Rs 7,936 crore in equities in March, mainly driven by bulk investment in the Adani Group companies by the US-based GQG Partners. However, if one adjusts for the investments of GQG in Adani Group, the net flow was negative. Going forward, the outlook for FPI flow is expected to remain volatile due to the tight monetary policy of the US Federal Reserve. The interest rate hike by 25 basis points in the coming policy meeting as indicated by the US Fed minutes, could impact FPI investments, Sonam Srivastava, founder of investment advisory firm Wright Research, said. However, the stability of the Indian economy compared to other emerging markets and reasonable valuations may continue to attract FPIs to Indian equities, she added. According to data from the depositories, FPIs started

Why have FPIs turned negative on India?

After three years of aggressive buying, foreign portfolio investors slammed brakes in 2022 and withdrew Rs 1.21 trillion from the Indian stock markets. Why have FPIs turned negative on India in 2022?

Aggressive rate hike by the US Federal Reserve, coupled with elevated inflation and high valuation of equities continued to keep foreign investors at bay from the Indian stock market

Net outflow by foreign portfolio investors (FPIs) from equities reached at Rs 1.69 trillion so far in 2022.

Continuing their selling spree for the sixth straight month, overseas investors have pulled out a net Rs 45,608 crore from the Indian markets in March so far

A trend reversal was witnessed in the debt segment in October from the big buying in the previous two months when FPIs had invested Rs 13,363 crore in September and Rs 14,376.2 crore in August

In the previous month, FPIs were net buyers to the tune of Rs 24,053 crore

The latest withdrawal has come after investment of Rs 24,053 crore by FPIs in domestic markets in June

The selling was far less intense in India with foreign portfolio investors (FPIs) offloading shares worth only $400 million

According to Securities and Exchange Board of India annual report, eligibility norms for FPIs were relaxed and data privacy concerns of FPIs were addressed

Marketmen believe that 2018 would not be same when it comes to investment by FPIs as "withdrawal of liquidity and rate hikes in developed economies pick up

According to recently released data, India's fiscal deficit rose to 96.1 per cent of the full-year target by the end of October