Highlights

  • FPIs withdraw $1.5 billion in September
  • The financial sector remains FPI's favorite

Latest news

Delhi Elections: MCD passes proposal to release Rs 25.35 crore for preparations

Delhi Elections: MCD passes proposal to release Rs 25.35 crore for preparations

Global stocks struggle amid inflation, economic fears: December 19, 2024 analysis

Global stocks struggle amid inflation, economic fears: December 19, 2024 analysis

Union Home Minister Amit Shah reviews J&K security situation

Union Home Minister Amit Shah reviews J&K security situation

Mysterious 'dinga dinga' illness causing body shaking affects 300 in Uganda

Mysterious 'dinga dinga' illness causing body shaking affects 300 in Uganda

Putin ready to meet Trump 'anytime' to talk Ukraine deal

Putin ready to meet Trump 'anytime' to talk Ukraine deal

India to play Champions Trophy matches at neutral venue: ICC

India to play Champions Trophy matches at neutral venue: ICC

India's electric vehicle market to reach Rs 20 lakh crore by 2030, says Nitin Gadkari

India's electric vehicle market to reach Rs 20 lakh crore by 2030, says Nitin Gadkari

BJP MPs admitted in RML Hospital ICU with head injuries after scuffle with opposition

BJP MPs admitted in RML Hospital ICU with head injuries after scuffle with opposition

Foreign investors shift gears: FPIs turn net sellers in Indian equities after seven-month buying streak

Foreign Portfolio Investors reversed their trend, withdrawing $1.5 billion from Indian equities, ending seven months of buying. Despite profit-taking in sectors like power and metals

Foreign investors shift gears: FPIs turn net sellers in Indian equities after seven-month buying streak

As the month of September draws to a close, Indian equities find themselves facing an unusual scenario - Foreign Portfolio Investors (FPIs) have turned into net sellers for the first time in seven months. The exit of foreign investors from Indian markets has been driven by several factors, including rising bond yields and the allure of a stronger US Dollar.

So far this month, FPIs have withdrawn over $1.5 billion from Indian equities, marking a significant shift from their previous buying spree. According to Bloomberg data, FPIs had collectively poured $21.3 billion into Indian shares between March and August, with a significant portion of these inflows attributed to Exchange-Traded Funds (ETFs) and increased secondary sales.

One sector that has witnessed FPI profit-taking is the power sector, with stocks like REC and PFC reaching record highs. Between September 1-15, FPIs sold power sector shares worth $500 million, a notable contrast to the $1.4 billion they invested in these stocks the previous month.

Metal stocks, on the other hand, continue to experience selling pressure due to a stronger US Dollar and a sluggish Chinese economy. In the first half of September, FPIs sold shares worth $549 million in the metal and mining sector, following nearly $840 million in sales during August.

Despite the sector-specific profit-taking, FPIs are maintaining their faith in the financial services sector, with investments totalling $772 million in the first half of September. This sector accounts for more than one-third (33%) of FPI investments, followed by IT (10.04%) and Oil & Gas (8.68%).

As of September 15, FPIs' Assets Under Custody (AUC) stood at $666.3 billion, equivalent to approximately 18% of India's overall market capitalization. In comparison to other emerging markets, Taiwan witnessed the largest outflows in September, amounting to over $5.5 billion.

Also Watch: JPMorgan identifies India among Asia's top three fastest-growing markets

ADVERTISEMENT

Up Next

Foreign investors shift gears: FPIs turn net sellers in Indian equities after seven-month buying streak

Foreign investors shift gears: FPIs turn net sellers in Indian equities after seven-month buying streak

India's electric vehicle market to reach Rs 20 lakh crore by 2030, says Nitin Gadkari

India's electric vehicle market to reach Rs 20 lakh crore by 2030, says Nitin Gadkari

Mallya Calls for Justice Over Excess Debt Recovery and Legal Inconsistencies

Mallya Calls for Justice Over Excess Debt Recovery and Legal Inconsistencies

UK PM Keir Starmer hosts Indian business chiefs to boost investments

UK PM Keir Starmer hosts Indian business chiefs to boost investments

Bangladesh Government Plans to Renegotiate Power Deal with Adani Power, Citing Unfair Terms

Bangladesh Government Plans to Renegotiate Power Deal with Adani Power, Citing Unfair Terms

New Zealand falls into recession with abrupt economic slowdown

New Zealand falls into recession with abrupt economic slowdown

ADVERTISEMENT

editorji-whatsApp

More videos

Dollar Pushes Indian Rupee to Record Low of 85, Fed's Policy Outlook in Focus

Dollar Pushes Indian Rupee to Record Low of 85, Fed's Policy Outlook in Focus

Oil Prices Rally on Inventory Drop, Market Awaits Fed Projections

Oil Prices Rally on Inventory Drop, Market Awaits Fed Projections

SEBI Expands UPSI Definition, Strengthens ESG and Governance Frameworks

SEBI Expands UPSI Definition, Strengthens ESG and Governance Frameworks

Gold Imports surge in November: Commerce Ministry examining data for any calculation error

Gold Imports surge in November: Commerce Ministry examining data for any calculation error

Indian Stock Market: Mixed Sectoral Performance Amid IPO Highlights

Indian Stock Market: Mixed Sectoral Performance Amid IPO Highlights

Parliamentary Panel bats for legal guarantee of MSP to protect farmers' interests

Parliamentary Panel bats for legal guarantee of MSP to protect farmers' interests

Bihar fully prepared to create robust business ecosystem, investment safe: Dy CM Samrat Choudhary

Bihar fully prepared to create robust business ecosystem, investment safe: Dy CM Samrat Choudhary

"If they tax us, we tax them...," Trump Signals Tough Trade Stance; Reciprocal Tariffs on India

"If they tax us, we tax them...," Trump Signals Tough Trade Stance; Reciprocal Tariffs on India

Top 5 Losers of NIFTY 50: A Day of Decline for Leading Stocks

Top 5 Losers of NIFTY 50: A Day of Decline for Leading Stocks

India's renewable energy capacity addition doubled to 15 GW in Apr-Nov: Pralhad Joshi

India's renewable energy capacity addition doubled to 15 GW in Apr-Nov: Pralhad Joshi

Editorji Technologies Pvt. Ltd. © 2022 All Rights Reserved.