Foreign portfolio investors (FPIs) started July as net sellers as they pulled out somewhat A total of Rs 811 crore from the Indian market on the first day of the month. FPIs have shown a selloff trend on the Indian capital markets so far this entire year.
FPIhas been removed 811 crore as on July 1, 2022, with massive outflows in equity and debt-VRR market, as per NSDL data.
Overall, FPI outflows remained flat 261 crores in the equity market, while there was a sell-off 372 cr in Debt-VRR market. Meanwhile, the debt market also registered an outflow of 186 crores. However, this was not the case with the hybrid market as the FPIs invested 8 crores in this basket on Friday.
due to excessive bear market Globally, geopolitical tensions, higher prices of crude oil and other commodities, the development of the pandemic, multi-year high inflation, and tightening of aggressive monetary policy have dented investor sentiments as a possible slowdown and slowdown in economic growth. is suspected. To reduce appetite for FPI capital market.
Thus, following macroeconomic risks, these were spread in the market including outflow of foreign funds. On the domestic front, in the case of foreign investors in June, most of the money kept going out of the market.
In June, stood at the outflow 51,422 crore – Highest ever monthly sales in the Indian market in 2022. In April and May, the outflow was approximately 36,518 crore and 22,688 crores.
Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “FPIs are selling more in countries with a rising current account deficit (CAD) like India as the currencies of such countries are more vulnerable to depreciation. At the end of June, FPIs sold It is showing a declining trend.”
“If the market expects or reacts to good Q1 results in July, FPIs may sell again. This trend will stop only when the dollar stabilizes and US bond yields decline,” Vijayakumar said.
During the first quarter (April-June 2022) of FY23, the total FPI outflow in domestic was 1,10,628 crore as against outflow of – 1,16,662 crore as seen in the previous quarter (January-March 2022).
In the first half of 2022 (January – June this year), FPIs pulled out huge amounts 2,27,290 crore from the Indian market.
Overall, in 2022 so far, as of July 1, the FPI outflow in the market is approx. 2,28,101 crores. Equity market was worst hit with outflow of 2,17,619 crore, while the debt market saw an outflow of 15,056 crores. Investment seen in both Debt-VRR and Hybrid market 2,712 crore and 1,862 crore so far this year.
The above data includes equity, debt, debt-VRR and hybrid markets.