FPIs Offloaded Rs 27,000 Cr In Equities During January
Foreign Portfolio Investors (FPIs) continued their selling trend in the Indian cash market, disposing of equities worth Rs 27,664 crores up to 25 January, according to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. FPIs showed a preference for selling in the autos and auto ancillary, media and entertainment sectors, while making selective purchases in oil and gas, power and financial services.
The recent surge in global bond yields, particularly in the US, has raised concerns and triggered selling in the cash market. The earlier rally, attributed to the Fed's pivot, witnessed a drop in the 10-year bond yield from 5 per cent to around 3.8 per cent. However, the yield is now back up to 4.18 per cent, indicating that the anticipated Fed rate cut might not occur until the second half of 2024.
In a report by Kotak Institutional Equities, it was highlighted that listed funds experienced USD 2 billion in inflows, primarily driven by ETF inflows. India-dedicated funds witnessed a total of USD 3.1 billion in inflows, comprising USD 2 billion from ETFs and USD 1.1 billion from non-ETF sources. On the other hand, GEM funds faced USD 247 million in outflows, driven by USD 337 million in non-ETF outflows, partially offset by USD 90 million in ETF inflows.
Emerging market fund flows exhibited mixed results, with South Korea, Indonesia, and Taiwan experiencing outflows of USD 3 billion, USD 262 million, and USD 76 million, respectively. Meanwhile, China, India, and Brazil saw inflows of USD 10.8 billion, USD 2 billion, and USD 186 million, respectively. Overall, FPI and EPFR activity displayed divergent trends for Indonesia, South Korea and Taiwan.
