On Friday, FIIs sold Indian equity worth Rs 11,639 crore, selling their worst single-day in February. In 20 trading sessions, they were only buyers on two patterns – on February 18 when they paid Rs. 4,786.6 crore domestic shares were bought and on February 4 when they bought 809.2 crore shares.
In January, FIIs were net sellers for Rs 78,027 crore.
“The Corporate has led to the continuous flow of elevated valuation, foreign portfolio investment (FPI), with concern over the growth of the earnings. The earnings reports for the third quarter of FY 2025 have been gentle, with the atmosphere of uncertainty, outposts, outposts, outposts. – Listed investments, waterfield consultants said.
With the exception of December, when foreign investors bought shares worth Rs 15,446 crore, the trend is one to sell. Last year in October Chatber and November, they sold domestic equity, which is Rs 115,629 crore. For the entire year ended December 31, they bought only Rs 427 crore equals.
Also read: After the Nifty recorded its sequential monthly fall in February, can March Season pull it out of the woods?
After Kovid, the Nifty recorded the worst decline in February-month, ending with a 9.9% cut as the Trump factor weighs on the D-Street, despite being more severe in IT, auto and pharma stocks, widely sold in the fields. In 20220, the heartbeat index fell 6.4% beyond the nationwide lockdown due to Kovid -19.
On Friday, the Nifty ended by breaking all major critical support levels at 22,124.70. It went down by 420.35 points or 1.86%.
Commenting on current trends, Chief Investment Strategist Dr. GeoGit Financial Services. VK Vijay Kumar called it “important contradiction” where FIIs sell heavily in financial services, the area that is doing well in its terms and the valuation is attractive.
“FIIs are focused on selling in India as evaluation is high in India and money is moved to Chinese stocks where evaluation is very low. But in the process, they are selling in the best performance field with attractive valuations, “Vijay Kumar said.
“When the fees return to India, they are likely to buy the same banking stocks that they now sell. It is important to note that FIIs are putting money in India through the ‘primary market and other’ category where evaluation is moderate. In 2024, the FII invested Rs 1,21,637 crore through the ‘primary market and other’ category.
He also mentioned India’s latest Q3FY25 GDP figures. “If corporate earnings follow the market will turn back and FII buyers will turn. This will happen when the leading indices indicate a turn in corporate earnings, “he added.
Bhowar said that FPI has reached a high-year low due to significant sales in Indian equity, and investors are likely to wait for a recovery procurement signals before re-entering the market. Until then, instability is expected to continue due to the ongoing global and domestic challenges, he said.
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