Foreign investors sold Rs 19,065.79 crore of Indian equities during the week from October 14-18. The same period had witnessed Rs 31,568.03 crore of Indian equities sold by foreign investors in the last week.
Data from the National Securities Depository Limited showed that foreign investors continued to sell Indian equities this week but at a slower pace than last week.
Between October 14 and October 18, FPIs sold Indian equities worth Rs19,065.79 crore. That is significantly less than what FPIs offloaded the previous week when they offloaded equities worth Rs31,568.03 crore.
October has seen the highest outflows from FPIs in their history.
This month, net sales by foreign investors have stood at Rs77,701 crore—higher than any sell-off witnessed during the COVID-linked selling in March 2020, when Rs61,972.75 crore was sold off. That makes October a historic month of seller pressure from FPIs.
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According to banking and market expert Ajay Bagga, “The markets had factored in regular, sharp Federal Reserve rate cuts after the surprising 50 bps cut in September.”.
But since then, US economic data has been very strong, in a ‘no-landing’ scenario. That has meant a very strong USD, which has risen for the last three weeks. US yields are rising. These factors have a very poor negative correlation with EM flows.
Another factor was India’s FII outflows, partially because of this and the China stimulus announcement, which sharply raised Chinese markets.
