FPIs sold ₹2,000 crore in Indian equities so far in February. Which stocks do they buy?

In the current month till February 17, FPIs pulled out at least Rs 2,006 crore from Indian equities, according to the latest NSDL data. Also, these investors were net sellers in debt-VRR and hybrid instruments 2,036 crore and 131 crores.

But FPI remained net buyers in the debt market with inflows of 2,413 crores so far in the month of February.

However, buying on credit market Could not offset the effect of selling in equity and debt-VRR. Hence, in February so far, FPIs are net sellers 1,760 crore in the overall Indian market.

FPI sold heavily in January 2023 28,852 crore in Indian equities.

Thus, the year-to-date FPI outflow in Indian equities comes around 30,858 crores.

Why are FPIs selling?

Explaining the reason behind the sell bias of FPIs, Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “The hallmark of the stock market performance this year has been India’s poor performance with Nifty down 1.4% YTD In contrast, the Taiwan index is up 8.3% and the Shanghai Composite is up 3.4%. The main reason for this variation in performance is FPI outflows from India and inflows into other emerging markets such as China, Taiwan, Hong Kong and South Korea.

The outflows from India have mainly been triggered by higher valuations in India and flows into other markets have been triggered by their relatively cheaper valuations, Vijayakumar said.

However, the chief strategist at Geojit also pointed out that “the opening up of the Chinese economy and improving prospects there have played a significant role in large-scale inflows into China. A significant recent trend is that FPI selling has come down significantly.” And FPIs have also turned buyers. In recent times.”

According to Vijayakumar, FPIs have been buyers in auto and auto components and construction. He was a salesman in banking and financial services in which he is sitting on handsome profits.

Same has happened with FII. Foreign Institutional Investors (FIIs) have sold overall 1,408.36 crore in domestic equities, according to Stock Age, which tracks the daily performance of FIIs and DIIs. There was a heavy selloff in the last month 41,464.73 crores.

Going forward, the strategist at Geojit said, “It appears that the sustained sell-off seen in India since early January has ended, but they could trade higher again.”

So far in 2023, as of February 17, the Nifty 50 has fallen over one per cent, while Sensex losses have been largely muted. On Friday, the Sensex closed at 61,002.57, down 316.94 points or 0.52%. The Nifty 50 closed at 17,944.20, down 91.65 points or 0.51%.