May sees worst FPI sell-off in over two years at Rs 44,000 crore

Foreign portfolio investors (FPIs) continued their selling spree in May, pulling out nearly Rs 44,000 crore ($5.7 billion) from domestic markets. This is the worst sell-off the markets have seen since March 2020 when foreign investors dumped shares worth Rs 58,632 crore ($7.9 billion) due to the scare triggered by Covid-19

The sell-off in May is also the second-highest monthly outflows recorded in the domestic market since 1993.

The latest sell-off by FPIs is triggered by worries around stagflation as the US Federal Reserve looks to aggressively tighten its monetary policy even as supply disruptions caused by the Russia-Ukraine war and lockdowns