FPIs Sold Stocks To The Tune Of Rs 7,543 Crore In August

New Delhi: In August, FPIs sold stocks to Rs 7,543 crore, V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services. After three months of sustained buying with cumulative investment of Rs 1,37,603 crore, FPIs have turned sellers in India.

Strength in the dollar index and the US 10-year bond yield remaining well above 4 percent is a short-term negative for FPI flows to emerging markets like India, he said. (Also Read: Love & Profits: Turn Your Passion For Pairing Hearts Into Earnings And Earn Upto Rs 50,000 Per Wedding)

FPIs remain buyers in financials, capital goods and financials and also in IT selectively. He added that a significant trend in the market is that FPI selling is countered by strong DII buying. (Also Read: Unlock Your Future With OpenAI: Lucrative Opportunities Offer Chances To Earn Up To Rs 3.7 Crore Annually)

In view of the strong dollar and high US bond yields FPIs may continue to sell in India, he added. Also, since the markets have rallied smartly during the last three months, some profit booking by FPIs would be rational and can be expected.

Despite the outflow of FPI in July, sustainability of the stock market also indicates the strength of domestic investors and their maturity, says Kislay Upadhyay, smallcase manager and Founder of FidelFolio Investments.

On the mutual funds data by AMFI, he said that net equity inflows have maintained their positive trajectory throughout the fiscal year 2024. Nevertheless, there has been a month-on-month reduction in net equity inflows, declining from Rs 8,637 crore to Rs 7,626 crore, reflecting a 12 per cent drop.