FPI net sellers ₹14,935 crore in the first half of February

FPIs are net sellers for the fourth consecutive month.

Total net outflow during February 1-11 remained at 14,935 crores.

According to the data of depositories, FPIs pulled out 10,080 crore from equity, 4,830 crore from the debt segment and 24 crore from hybrid devices.

“FPIs accelerated selling momentum after the US Federal Reserve signaled the end of the over-lax monetary policy regime. Also, globally, bonds in recent days on expectations of an interest rate hike by the US Fed. Yields have increased, said Himanshu Srivastava, associate director (manager research), Morningstar India.

He said with US inflation hitting a 40-year high, the stage is set for aggressive rate hikes by the US Fed in the coming months, which could trigger further foreign outflows from Indian equities.

Shrikant Chauhan, Head of Equity Research (Retail) at Kotak Securities said that inflows into emerging markets have been mixed so far in the month of February 2022.

Thailand, Indonesia, South Korea and the Philippines reported positive inflows of $1,155 million, $580 million, $477 million and $133 million, respectively.

Taiwan, on the other hand, reported negative inflows of $410 million, he said.

VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “FPI selling is likely to continue in the coming days, in light of the weakness in global markets and the uptrend in US 10-year bond yields by over 2%.”

He said selling of FPIs in financials, especially high quality banking stocks, has made their valuations attractive.