Foreign portfolio investors (FPIs) continued to be net sellers so far in 2023. In just three days of February, the outflow from foreign investors is to the tune of ₹5,753 crore from equities. In January, the outflow came in at around ₹28,852 crore. While the equity market records selling pressure, FPIs however have risen for debt instruments. The stock market was jittery in the week that ended on February 3rd owing to foreign funds outflow and free fall in Adani Group’s stocks post Hindenburg allegations and withdrawal of FPO.
As per NSDL data, FPIs sold ₹5,753 crore from Indian stocks between February 1st to 3rd. On the other hand, they are net buyers in the debt market with an inflow of ₹5,502 crore in these three days.
In January, FPIs pulled out ₹28,852 crore from equities, while they invested ₹3,531 crore in debt.
So far, year-to-date, FPIs selling in the equity market is approximately ₹34,605 crore. While the debt market garners an inflow of ₹9,033 crore.
Dr.V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said, “The massive FPI selling in Indian markets impacted market sentiments.”
In the cash market, Geojit strategist highlighted that FPIs sold a mammoth ₹53,887 crore in January and followed up this with ₹3,212 crore of selling in February so far.
Also, except for the budget day (February 1st), foreign institutional investors (FIIs) were net sellers throughout last week in Indian stocks.
FIIs sold ₹6,792.80 crore in the equity market on January 30, followed by another selloff of ₹5,439.64 crore on January 31. However, FIIs were net buyers on the day of the budget 2023 announcement where the inflow came in at ₹1,785.21 crore. But the sentiment turned bearish yet again on February 2nd and 3rd with an outflow of ₹3,065.35 crore and ₹932.44 crore respectively.
