FPIs were net sellers of Indian stocks worth Rs 17,083 crore so far in May.
Last month, in April, FPIs sold shares worth Rs 8,671 crore. However, after selling stocks worth Rs 25,744 crore in January, FPIs made net purchases of Rs 35,098 crore and Rs 1,539 crore in March and February respectively. On a net basis, they are the buyers of Rs 4,589 crore so far this year.
“There was aggressive selling by FPIs in May. In the cash market, selling by FIIs was much higher at Rs 24,975 crore,” said VK Vijayakumar, chief investment strategist at Geojit Financial Services. month.
While foreign investors are withdrawing their investments from India, domestic investors have come to the rescue. Domestic institutional investors (DIIs) bought shares worth Rs 19,410 crore.
He believes the larger decline in the overall market was due to HNIs and retail investors taking some profits and being in a wait-and-see mode in response to noise related to the election results. But he also cited recent circumstances as a cause. FIIs sell on poor performance of Indian stock market. Vijayakumar said that while the Nifty has fallen 2.06 per cent in the past one month, stocks in China and Hong Kong have performed better. China’s Shanghai Composite Index and Hang Seng Index rose 3.96% and 10.93%, respectively, over the past month. “The FPI strategy is to sell expensive India and buy very cheap China, mainly in Hong Kong. India’s PER is India’s PER. Geojit analyst said, “As long as the “sell India, buy China” trade continues, FII Selling is more than twice the PE ratio in Hong Kong, he said. From a market perspective, he expects the market to pull back due to aggressive buying by DIIs, retail investors and HNIs.
In May, Nifty fell 2.5% or 550 points.
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