Mumbai: Foreign Portfolio Investors (FPIs) sold Indian equities worth Rs 24,734 crore so far this month. As per market experts, the surge in bond yield in the US is the main reason for this.
Before this, FPIs made a net investment of Rs 66,134 crore in December and Rs 9,000 crore in November. On the other hand, FPIs infused Rs 17,120 crore in the debt market during the period under review. FPIs made a net investment of Rs 18,302 crore in the debt market in December, Rs 14,860 crore in November, and Rs 6,381 crore in October.
‘The rising bond yields in the US is a matter of concern and this has triggered the recent bout of selling in the cash market,’ V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.
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In terms of sector, FPIs were sellers in auto & auto ancillary, media & entertainment and marginally in IT and they bought in oil and gas, power and selectively in financial services.
Overall, the total FPI flows for 2023 stood at Rs 1.71 lakh crore in equities and Rs 68,663 crore in the debt market. Together, they infused Rs 2.4 lakh crore into the capital market.
Indian equities witnessed a net outflow of Rs 1.21 lakh crore by FPIs in 2022. Before the outflow, FPIs invested money in the last three years. FPIs made a net infusion of Rs 25,752 crore in equities in 2021, Rs 1.7 lakh crore in 2020, and Rs 1.01 lakh crore in 2019. FPIs took out funds worth Rs 15,910 crore in 2022, Rs 10,359 crore in 2021, and Rs 1.05 lakh crore in 2020 from debt markets.
Foreign institutional investors (FII) or Foreign portfolio investors (FPI) are those who invest in the financial assets of a country while not being part of it. On the other hand, Domestic Institutional Investors (DII) are those who invest in the country they are living in. Both types of investors can impact the economy’s net investment flows.
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