Foreign portfolio investors (FPIs) have remained net sellers in February so far, however, the pace of selling has slowed down compared to the previous month. outflow of more than 2,300 crore was entered into Indian equities by FPIs. These foreign investors showed appetite in stocks of financial, capital goods, IT and healthcare sectors. Meanwhile, selling by foreign institutional investors is about to end 4,500 crores.
As per NSDL data, FPI sold 2,313 crore in domestic equity between February 1 and February 24. There are two more days left in the month of February.
So far, the speed of sales is lower than the outflow 28,852 crores in the month of January 2023.
Dr VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, “FPIs remained on sell mode in February as well. FPIs sold equities. 2627 crores in February. The pace of sales has slowed down as compared to January.
Vijayakumar also cited CDSL data which showed that for 2023, FPIs sold equities till February 24 31,164 crores.
With regard to sector-wise buying, Vijayakumar said, “There is a clear shift in the selling portfolio. In the first half of February, FPIs turned buyers into financials. They were sellers in financials in January. Also, FPIs bought capital goods, it and Health care In the first half of February. They sold oil and gas, metals and electricity.”
Year-on-year, FPI outflow in equity market is around 31,165 crore, NSDL data showed.
While equity saw outflows, FPIs remained net buyers in the debt market. Inflows into the debt market so far in February are approx. 2,819 crores. January arrivals were around 3,531 crores.
Meanwhile, Foreign Institutional Investors (FIIs) made huge withdrawals 4,508.91 crore from equities in the current month, till Feb 24. FII sold 41,464.73 crore in equity during January, as per Stock Age data.
FII pulled out this week 3,100.55 crore from Indian shares. FIIs were net sellers throughout the week except Tuesday.
“Bond yields continued to rise in the US last week on expectations that the Fed will take a more accommodative stance in the context of slowing deflation in the US. Rising rates in the US could lead to more capital outflows from emerging markets,” said geojit strategist. South Korea and Taiwan saw good capital inflows this month.”
On Friday, Sensex and Nifty 50 extended their decline for the sixth consecutive day, while closing below 59,500 and 17,500 levels. Over, riding on the back of bearish market This week Rs 6.86 lakh crore of investors have been wiped out.
The Sensex closed 141.87 points or 0.24% down at 59,463.93. While the Nifty 50 closed at 17,465.80, down 45.45 points or 0.26% on Friday.
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