FPIs remain net sellers in October, withdraw ₹3,825 crore

In the last two months, when FPIs saw heavy buying in the debt segment ₹13,363 crore in September and ₹14,376.2 crore in August.

However, so far in October, FPIs have pulled out. ₹1,494 crore, the depository data showed.

FPI pulled out of equity ₹2,331 crore.

total net outflow remained at ₹3,825 crore during October 1-22.

VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “FPIs have sold software stocks worth ₹5,406 crore in the first half of October even though software companies had good second quarter (Q2) results. So, it is a clear case of profit booking. FPIs have been buyers in financial services.”

Morningstar India associate director (manager research) Himanshu Srivastava said FPIs continue to stay on edge, adopt a wait-and-watch approach and book profits along the way.

He further said that there remains concern among FPIs regarding the tapering of easing liquidity after the US Federal Reserve indicated a sooner-than-expected rate hike.

Also, concerns like rising oil prices, US bond yields and challenges to the Chinese economy are on his radar, thus putting him on tenterhooks and preventing him from making substantial investments in Indian equities.

Shrikant Chauhan, Head, Equity Research-Retail, Kotak Securities, said, “FPI inflows from October till now were mixed.

Indonesia, Philippines and Thailand reported FPI inflows of USD 617 million, USD 38 million and USD 679 million respectively. On the other hand, Taiwan and South Korea reported FPI outflows of USD 2,956 million and USD 2,472 million respectively, he said.

“Driven by a sharp increase in energy prices globally, that could be a major headwind for developed and emerging markets.

“Any rate hike by the US Federal Reserve in the near future will act as a major headwind for overall inflows into emerging markets,” Chauhan said.

This story has been published without modification in text from a wire agency feed.