FIIs sell nearly 80% of equity holdings invested in 2020-21: NSDL data

Foreign institutional investors (FIIs) have sold shares worth Rs 2,14,217 crore in Indian markets since the start of financial year 2021-22 till June 10, 2022, data from National Securities Depository Limited (NSDL) showed.

The magnitude of sell-off by foreign investors has been huge as they have sold 78 per cent of their equity holdings of what they had invested in financial year 2020-21, according to analysis of NSDL data.

The sell-off in Indian markets came after the FIIs purchased shares worth Rs 2,74,032 crore in financial year 2020-21 when the pandemic struck the Indian markets and the Nifty 50 index fell sharply to 7,500 levels making valuations attractive for markets.

Foreign portfolio investors’ (FPI) net investment in Indian equities currently stands at 8,24,100 crore. According to analysis of the investment pattern of the last 30 financial years by FPIs, the current financial year is the fourth fiscal where they have sold shares in the Indian equity markets.

The first time the FPIs were net sellers in the Indian markets was in fiscal year 2008-09 when global financial crisis gripped the world economy in the aftermath of the subprime mortgage crisis in the US. In fiscal year 2008-09, FPIs sold shares worth Rs 47,706 crore. In 2015-16, FPIs sold shares worth Rs 14,172 crore, while, in 2021-22 they sold shares worth Rs 1,40,010 crore and since the start of current financial year they have sold shares worth Rs 74,207 crore.

The sell-off in Indian markets came after the FIIs bought shares worth Rs 2,74,032 cr in 2020-21 when the pandemic struck the Indian markets and the Nifty 50 index fell sharply to 7,500 levels