FPIs Sold Stocks Worth Rs 10,921 Cr In August

After maintaining a streak of purchasing for three months, accumulating a total investment of Rs 1,37,603 crore, Foreign Portfolio Investors (FPIs) have shifted their stance to selling in August, as stated by V.K. Vijayakumar, the Chief Investment Strategist at Geojit Financial Services.

According to consolidated data from NSDL, FPI investments in August until the 18th amounted to Rs 8,993 crore. However, this figure encompasses bulk transactions and investments made through the primary market. In the cash market, FPIs divested stocks worth Rs 10,921 crore, engaging in selling on 10 days and purchasing on merely three days within August so far.

Vijayakumar highlighted that the strength of the dollar index, exceeding 103, and the US 10-year bond yield maintaining around 4.25 per cent pose short-term challenges for FPI flows into emerging markets like India.

While FPIs remain consistent purchasers in capital goods and power sectors, they have recently commenced selling in the financial sector.

Although Domestic Institutional Investors (DIIs) are countering FPI selling through their buying activity, this is insufficient to prevent the market's decline, Vijayakumar remarked.

Given the prevailing robust dollar and escalating US bond yields, it is anticipated that FPIs will continue their selling trend in the near future.