FPIs have been net sellers of Indian stocks worth Rs 14,794 crore in June so far.
FPIs continued their trend of selling stocks worth Rs 34,257 crore in May and April-June, even as domestic institutional investors came to the market’s rescue and maintained their buying positions.
On Friday, foreign portfolio investors/FIIs were net buyers while domestic institutional investors (DIIs) sold shares worth Rs 1,289.75 crore.
“Selling in the cash market has been excessive and sustained. So far in 2024, FPIs have sold shares worth Rs 23,363 crore. An important trend in FPI activity is large selling through exchanges and buying through primary market channels.” VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said:
In his view, FPIs are seeing valuations in India as very high and hence capital is moving towards cheaper markets. “FPI pessimism about Chinese stocks appears to have ended, and as the valuation of Chinese stocks has become very attractive, there is a tendency to invest in Chinese stocks listed on the Hong Kong Exchange,” he said. In the wake of the unexpected election results in which the Bharatiya Janata Party (BJP) failed to win a majority, the market rebounded smartly with the Nifty ending the week with a gain of 3.6%. IT stocks and financial stocks led the recovery. The former is up nearly 8.6% on a weekly basis, while Nifty Bank is up 1.67%. “After the huge volatility witnessed in the markets following the election results (both exit polls and actual results), the markets are slowly stabilizing. An important thing to consider is the high valuation of Indian equities, especially in the broader market. The high valuation of FPIs going forward is “It will attract additional sales,” he added. After selling stocks worth Rs 25,744 billion in January, FPIs made net purchases of Rs 35,098 billion and Rs 1,539 billion in March and February, respectively. On a net basis, it has been sold for Rs 19,824 crore so far this year.
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