Key Points
- FPIs sold ₹19,994 crore worth of equities in the first five days of November.
- The biggest sale happened on November 3, with ₹5,635 crore sold in one day.
- FPIs sold ₹1,13,858 crore in October, the highest monthly outflow ever recorded.
- Despite selling in the secondary market, FPIs invested ₹19,842 crore in IPOs and other primary market opportunities in October.
- Experts expect more market volatility as FPIs adjust their portfolios, though financials and other sectors show resilience.
Looma News
Indian stock markets are facing significant pressure due to ongoing selling by Foreign Portfolio Investors (FPIs). According to the National Securities Depository Ltd (NSDL), FPIs have sold ₹19,994 crore worth of equities in just the first five trading days of November. The largest single-day sale took place on November 3, when ₹5,635 crore worth of stocks were offloaded. This heavy selling has contributed to a sharp drop in key indices like the Nifty 50 and Sensex, which have fallen by about 8% since October.
October saw an even larger wave of selling, with FPIs unloading ₹1,13,858 crore in equities, setting a new record for monthly outflows. This has raised concerns about the stability of India’s stock market. Despite the large sell-off, FPIs have continued to show interest in India’s primary market, particularly in IPOs. In October, they invested ₹19,842 crore in IPOs and other primary market opportunities, signaling selective interest in certain sectors and emerging companies.
Experts believe that this trend of selling could continue in the short term as FPIs adjust their portfolios, especially given the high valuations in India compared to other markets. “The rally in Chinese stocks has slowed down, as seen in the falling Shanghai and Hang Seng indices. With India’s valuations still high, FPIs may keep selling, which could limit any potential market rally,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Despite the broad selling, some sectors, like financials, have shown strength. While financial stocks have been a key target for FPI selling, domestic institutional investors (DIIs) and high-net-worth individuals (HNIs) have been buying. Experts believe that this mix of FPI selling and domestic buying will keep the market volatile in the short term. Investors are closely watching for signs that the Indian equity market may stabilize.
