FPIs offload domestic equities worth ₹26,533 crore in November
What's the story
Continuing their selling spree into November, Foreign Portfolio Investors (FPIs) have sold Indian equities worth ₹26,533 crore so far this month.
This takes the total sell-off by FPIs in 2024 to ₹19,940 crore. In October alone, FPIs sold shares worth a staggering ₹94,017 crore.
This came after a September purchase where they bought domestic equities worth ₹57,724 crore.
Investment trend
FPI investment pattern in Indian equities
The investment pattern of FPIs in Indian equities has been highly volatile this year.
In August, they purchased shares worth ₹7,322 crore, down from July's total buying figure of ₹32,359 crore.
June witnessed them as net buyers at ₹26,565 crore after being net sellers in April and May, when they sold equities worth ₹8,671 crore and ₹25,586 crore respectively.
Market activity
FIIs and DIIs: A comparative analysis
On Friday, Foreign Institutional Investors (FIIs) were net sellers at ₹1,278.37 crore, while Domestic Institutional Investors (DIIs) were net buyers at ₹1,722.15 crore.
This stark contrast in the behavior of foreign and domestic investors in the Indian equity market is worth noting.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, has given insights into the current FPI trends.
Influences
Factors influencing FIIs' ongoing selling spree
Vijayakumar credits the continuous selling by FIIs to three key factors: the 'Sell India, Buy China' trade, worries over FY25 earnings, and the 'Trump trade.'
He thinks that out of the three, the 'Sell India, Buy China' trade has ended.
The Trump trade also seems to be coming to an end as valuations have hit high levels in the US.
Forecast
FII selling in India likely to taper off
Vijayakumar predicts the FII selling in India is likely to taper off soon, as the valuations of large-cap stocks are coming down from their previously elevated levels.
He also said that FIIs have been buying IT shares, which has been imparting resilience to these stocks.
Banking shares have remained resilient despite FII selling mainly due to DII buying.