fpi selling: FPIs have sold stocks worth Rs 3,776 crore in February so far.
FPIs bought shares worth Rs 138 crore on Friday. In January, they sold shares worth Rs 25,744 crore.
Expert VK Vijayakumar, chief investment strategist at Geojit Financial Services, attributed the selling trend to the surge in US bond yields and said bond yields have risen on higher-than-expected consumer price inflation, leading FPIs to continue selling in the cash market.
From February to 16, FPIs sold stocks worth Rs 611.2 billion through exchanges, but reduced their net selling through primary markets to Rs 377.6 billion.
Vijayakumar said the FPI selling trend will continue as long as US bond yields rise. However, the ongoing FPI debt purchases that began earlier this year will also continue, he added.
Selling of stocks by FPIs would have been much higher following the rise in US bond yields, but FPIs are showing restraint due to strong buying action by domestic institutional investors (DIIs), Geojit analysts said. For this reason, he said, FPIs refrained from aggressive selling because “they would later have to buy the same stocks they sold” once favorable conditions for buying were created. Froday’s row helped fuel strong buying activity in auto and IT stocks. The S&P BSE Sensex rose 376.26 points, or 0.52 per cent, to close at 72,426.64, while the Nifty 50 rose 129.95 points, or 0.59 per cent, to 22,040.70.(Disclaimer: Recommendations, suggestions, views and opinions provided by experts are their own and do not represent the views of The Economic Times.)
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