FPIs removed over ₹20,000 cr from Financial, IT sectors in April month

Foreign Portfolio Investors (FPIs) cut out over ₹20,000 crore from financial services and information technology (IT) sectors in last month, as they continued their selling of Indian equity shares for the seventh straight month. According to latest data, the financial services sector saw a net out flow of ₹12,891 crore in April while the IT sector observed an out flow of ₹8,579 crore.

However, FPIs were net buyers in healthcare (₹5,231 cr), FMCG (₹1,756 cr) and Automobile (₹1,160 cr) among other sectors, minimizing the total out flow to ₹17,141 crore. FPIs sell ­off continues in May, too, with foreign investors dragging out ₹11,035 crore as on Monday (in last five trading sessions).

FPI,s have been net sellers in indian market since October 2021. Increasing inflation, tightening monetary policy by major central banks, hiking interest rates in the U.S. and other developed markets, and the Ukraine war with its impact on oil prices have panicked foreign investors, and they have been exiting India and other emerging markets.

“Foreign Portfolio Investors are likely to turn buyers if the market corrects another 5 per cent from the current levels. It is important to respect that with Russia becoming uninvestable and China rolling under lockdowns and growth decreased, India will again become a good place for FPI’s,” said, VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

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