Foreign investors have put in Rs 11,500 crore in the Indian equities so far this month. This comes after a net outflow of Rs 5,294 crore in February and Rs 28,852 crore in January. In the calendar year 2023, FPIs have sold equitties to the tune of Rs 22,651 crore.
FPIs have made a cumulative investment of $191 billion in domestically-listed companies over the past three decades. Their value of holdings is currently at $578 billion. At the peak, the value of their holdings had climbed to $677 billion in FY22.
FPIs take out over Rs 4,000 cr from equities in July so far; pace of selling slows. For the first time in several weeks, FPIs bought equities worth over Rs 2,100 crore on July 6. The major factors driving FPI selling during last two to three months have been the steady appreciation of the dollar and rising interest rates in US.
Average daily selling by overseas funds has moderated to less than Rs 1,400 crore, compared with nearly Rs 3,500 crore in the preceding fortnight. Turnaround in FPI sentiment is underpinned by a rally in bond since softening of global commodity prices stoked optimism that the US Federal Reserve and other central banks will have room to be less aggressive in their fight against inflation.
