The Free Press Journal

FPIs pull out Rs 35,000 crore from stock market in May so far

The net outflow by FPIs from equities reached Rs 1.63 L cr so far in 2022

-

Exodus of foreign money from the Indian equity markets continues unabated with FPIs pulling out over Rs 35,000 crore so far this month on concerns over the prospects of more aggressive rate hike by US Fed and appreciati­on of the dollar.

With this, net outflow by Foreign Portfolio Investors (FPIs) from equities reached Rs 1.63 lakh crore so far in 2022. Going ahead, FPIs flow in India is to remain volatile in the near term, given the headwinds in terms of elevated crude prices, inflation, tight monetary policy, among others, said Shrikant Chouhan, Head - Equity Research (Retail), Kotak Securities.

"Since the mother market, US, is weak and dollar is strengthen­ing, FPIs are likely to continue selling in the near term," V K Vijayakuma­r, Cheif Investment Strategist at Geojit Financial Services, said.

Foreign investors remained net sellers for seven months to April 2022, withdrawin­g a massive net amount of over Rs 1.65 lakh crore from equities.

After six months of selling spree, FPIs turned net investors in the first week of April due to correction in

the markets and invested Rs 7,707 crore in equities.

However, after a short breather, once again they turned net sellers during the holiday-shortened April 1113 week, and the sell-off continued in the succeeding weeks as well.

FPI flows continue to remain negative in the month of May till date and have dumped equities worth Rs 35,137 crore during May 2-20, data with depositori­es showed.

US Fed has hiked rates twice this year to battle surging inflation caused by the disruption in supply chain due to the war between Russia and Ukraine.

 ?? ??

Newspapers in English

Newspapers from India