FPI outflow in January was the highest in seven months at 28.852 billion rupees.

The greatest outflow of foreign capital from Indian stocks in the recent seven months totaled 28,852 crore in January, mostly as a result of the appeal of the Chinese markets. Data with the depositories showed that there had been net investments of 11,119 crore in December and 36,238 crore in November prior to this. de

Future FPI flows are anticipated to be unpredictable as Indian equities continue to perform significantly worse than global markets, according to Shrikant Chouhan, Head of Equity Research(Retail), Kotak Securities. The data show that in January, FPIs removed a net amount of 28.852 crore from stocks. Additionally, since June 2022, when they withdrew a total of 50,203 crore from equity markets, this was the largest monthly outflow by FPIs.

Following the outflow in January, there is a net withdrawal from stocks of more than 5,700 crore in the first week of February. According to VK Vijayakumar, chief investment strategist at Geojit Financial Services, FPIs are selling in India and purchasing in cheaper countries like China, Hong Kong, and South Korea where valuations are favourable. The Indian market has underperformed significantly so far this year as a result of the “short India and long other inexpensive markets” strategy, he continued.

India is down 1.89 percent this year, whereas China, Hong Kong, and South Korea have all had gains of 4.71 percent, 7.52 percent, and 11.45 percent, respectively. Vijayakumar continued by saying that a performance like this is unlikely to continue for very long. FPIs, on the other hand, made 3,531 crore in debt market investments during the time period under consideration.

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