In September, FPIs bought domestic equities worth Rs 57,724 crore while in August, they had purchased shares worth Rs 7,322 crore which was down month-on-month from July when the total buying figures stood at Rs 32,359 crore. In June, they were net buyers at Rs 26,565 crore after remaining net sellers in April and May when they sold equities worth Rs 8,671 crore and Rs 25,586 crore respectively.
In February and March they were net buyers at Rs 1,539 crore and Rs 35,098 crore after starting the year on a negative note in January when they offloaded shares worth Rs 25,744 crore.
On Friday, the foreign institutional investors (FIIs) were net sellers at Rs 3,036.75 crore while the domestic institutional investors (DIIs) were net buyers at Rs 4,159.29 crore.
Commenting on the current FPI trends, V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said that sustained FPI selling which started in early October continues and is showing no signs of reversal any time soon. “The current wave of FPI selling was triggered by the Chinese stimulus measures and the cheap valuations of Chinese stocks. The elevated valuations in India made India the top choice of FIIs to sell,” he said.
FPIs have been sellers in the cash market on all days in October till October 24. “The cumulative FPI selling in equity through the stock exchanges this month stood at a massive Rs 1,02,931 crore through 24th. However, FPI were buyers in the primary market and bought shares for Rs 17,145 crores during this period. Some large IPOs enabled this big primary market investment. Net of the primary market purchase the total FPI sell figure stands at Rs 85790 crores during this period,” Vijayakumar said.The continuous FPI selling has impacted market sentiments pulling the Nifty down by 8% from the peak. The Geojit analyst said that he sees FPIs to likely continue their selling in the near-term since the market sentiment has turned weak due to the escalation of tensions in the Middle East and the uncertainty regarding the outcome of the US presidential elections.
Also Read: ICICI Bank Q2 Results: Net profit jumps 14.5% YoY to Rs 11,746 crore, NII up 9.5%
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