FPIS pull out `3,741 cr in three sessions in July

NEW DELHI: Foreign portfolio investors (FPIS) have pulled out Rs 3,741 crore from the Indian markets in just three trading sessions of July, which market analysts attributed to profit booking and appreciation in the rupee over the last few weeks. The depositories data showed that FPIS withdrew a net sum of Rs 3,959 crore from the equities but invested a net Rs 218 crore in debt segment between July 1-3. This translated into a total net withdrawal of Rs 3,741 crore during the period under review. The latest withdrawal has come after investment of Rs 24,053 crore by FPIS in domestic markets in June. FPIS turned net buyers after remaining net sellers for three consecutive months.

“Markets performing well in the recent times, and some appreciation in rupee over the last few weeks, have provided a good profit booking opportunity to foreign investors, which they decided to capitalise on,” Himanshu Srivastava, associate director-manager research at Morningstar India said.

FPIS have been actively trimming their holdings in some stocks and the value of which they find unattractive while they continue to invest in stocks that have reached very attractive valuations in the last 3 months, Harsh Jain, co-founder and COO at Groww, said. They are also showing a clear inclination towards financial stocks while they’re consistently reducing their exposure to the communication sector, Jain added.

With respect to investment in debt segment Srivastava said “the scenario is showing signs of normalising”.