FPIs pulled out ₹18,856 crore from Indian markets so far in February

According to depository data, foreign investors pulled out 15,342 crore from equity and 3,629 crore from the bond market between February 1-18. At the same time, he invested 115 crore in hybrid devices.

This translates into a net outflow of 18,856 crore during the period under review.

This is the fifth consecutive month of foreign fund outflows.

“Geopolitical tensions and the prospect of a rate hike by the US Fed has triggered an outflow from FPIs from the Indian equity markets in recent days. They added selling momentum after the US Fed signaled the end of the ultra-loose monetary policy regime. has grown rapidly,” said Himanshu Srivastava, Associate Director – Manager Research, Morningstar India.

Shrikant Chauhan, head-equity research (retail), Kotak Securities, said rising tensions between the US and Russia over Ukraine pushed investors into defensive zones and safe havens such as bonds and gold.

,FPI The net outflow from Indian equities in the last one year is close to US$ 8 billion. This figure is the highest since 2009. So far in February, FIIs have sold approx. 17,500 crores. India’s FPI outlook is that India has already envisaged a 16-18 per cent CAGR growth in earnings for FY13 and FY24, depending on earnings and economic growth cycle expectations.

Rajesh Bhatia said, “Yet these estimates do not account for risks of rising cost of capital in the US (India’s cost of capital is tied to US cost of capital) and therefore PE contractionary potential, nor inflation risk earnings growth.” hurting estimates.” , MD & CIO, ITI Long Short Equity Fund.

VK Vijayakumar, chief investment strategist, Geojit Financial Services, said, “Unless market corrections make valuations attractive, FPIs can be expected to sell more.

He said that domestic institutional investors and HNIs are gradually accumulating high quality financials, whose valuations have become attractive due to continuous selling of FPIs.