FPIs sell Indian equities worth ₹85,790 crore in October
Foreign portfolio investors (FPIs) have sold Indian equities worth ₹85,790 crore in October 2024. The massive sale has wiped out a major chunk of the total inflows for the year. FPIs' net investment now stands at ₹14,820 crore, a steep drop from ₹1,00,245 crore at September's end. Unlike October's sell-off trend, FPIs had bought domestic equities worth ₹57,724 crore in September.
Investment pattern in Indian equities
The investment pattern of FPIs in Indian equities has been volatile in 2024. They were net buyers in February and March with investments of ₹1,539 crore and ₹35,098 crore, respectively. However, they started the year as net sellers by offloading shares worth ₹25,744 crore in January. The trend reversed again in June when they bought equities worth ₹26,565 crore after being net sellers in April and May.
Selling spree impacts market sentiment
The relentless selling by FPIs has soured market sentiments, dragging Nifty 8% down from its peak. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, blames China's stimulus measures and the attractive valuations of Chinese stocks for the trend.
FPIs' selling trend likely to continue
Vijayakumar predicts that the FPIs are likely to continue their selling spree in the near term, as market sentiment has weakened amid escalating tensions in the Middle East and uncertainty surrounding the US presidential elections. He also noted that despite being sellers in the cash market throughout October, FPIs were buyers in the primary market, purchasing shares worth ₹17,145 crore during this period.
