FPIs turn cautious, pull out ₹4,515 cr from Indian equities in July so far


Foreign portfolio investors (FPIs) have pulled out 4,515 crore from the equities segment in the first half of July as they turn cautious towards the Indian market.

“With markets trading near all-time high, FPIs would have chosen to book profits. They have also been staying on the sidelines given high valuations and most likely on the back of the risk of a potential third wave of the coronavirus pandemic,” said Morningstar India Associate Director (Manager Research) Himanshu Srivastava.

Though the continuing firmness in the dollar and the possibility of rising bond yields in the US do not augur well for capital flows into emerging markets like India, there is no immediate worry at the moment, he said.


Besides, he also added that the outflows have not been huge which signifies that foreign investors are adopting a cautious stance towards Indian equities rather than being negative on it.

Overseas investors pulled out 4,515 crore from the equities during July 1-16, depositories data showed.

At the same time, they invested 3,033 crore in the debt segment. Net outflow during the period under review stood at 1,482 crore.


In June, FPIs became net buyers in Indian markets at 13,269 crore.

Commenting on the FPI activity in 2021 so far, V K Vijayakumar, chief investment strategist at Geojit Financial Services, said it has been “hugely volatile”.

They were aggressive buyers for three months during January, February and March. On concerns of adverse impact of the second wave of the pandemic, FPIs sold in April and May. They made a come back in June and started buying and now in July, they have again started selling, he noted.


For other emerging markets, Kotak Securities Executive Vice-President (Equity Technical Research) Shrikant Chouhan said that except for Indonesia, all other emerging markets witnessed FPI outflows in July so far.

“Philippines, South Korea, Taiwan and Thailand saw a total outflow of USD 151 million, USD 2,043 million, USD 373 million and USD 282 million, respectively. Indonesia reported inflows to the tune of USD 59 million during the same period,” he noted.

On the outlook, he also said FPI flows to India may remain volatile in the near term due to the US Fed monetary policy and rising crude oil prices.


This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

Subscribe to Mint Newsletters


* Enter a valid email

* Thank you for subscribing to our newsletter.


Never miss a story! Stay connected and informed with Mint.
our App Now!!

Stay connected with us on social media platform for instant update click here to join our  Twitter, & Facebook

We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.


For all the latest Business News Click Here 

 For the latest news and updates, follow us on Google News

Read original article here

Denial of responsibility! TechAzi is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More