FPIs in November so far Rs. 26,533 crore worth of domestic equity sales

Foreign Portfolio Investors (FPIs) continued their sell-off in November as well, with the month so far at Rs. 26,533 crore worth of domestic equities are being off-loaded. Total sales by them now stand at the end of September at Rs. 1,00,245 crore in 2024 against Rs. 19,940 crores.

In October, FPIs after September purchases of Rs. 94,017 crore of shares were sold, while FPIs sold Rs. 57,724 crore worth of domestic equity was purchased. While in August, they spent Rs. 7,322 crore worth of shares were bought which was down month-on-month from July while the total buying figure was Rs. 32,359 crores.

In June, they followed the rest of the net sellers in April and May by Rs. 26,565 crore were net buyers while they respectively received Rs. 8,671 crore and Rs. 25,586 crore equity was sold.

In February and March they paid Rs. 1,539 crore and Rs. 35,098 crore were net buyers after starting the year on a negative note in January when they bought Rs. 25,744 crore shares were offloaded.

On Friday, foreign institutional investors (FIIs) raised Rs. 1,278.37 crore were net sellers while Domestic Institutional Investors (DIIs) contributed Rs. 1,722.15 crore were net buyers.

Commenting on the current FPI trends, VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services attributed the ongoing selling by FIIs to three key factors. “One is the ‘sell India, buy China’ trade. Two, concerns around FY25 earnings and three the ‘Trump trade’.” Of the three, the ‘Sell India, Buy China’ trade has ended, as valuations in the US have reached highs.

According to him, FII selling in India is likely to decline soon given the valuation of largecap stocks coming down from earlier elevated levels.

“FIIs are buying IT stocks and this is giving resilience to IT stocks. Banking stocks have remained resilient despite FII selling, mainly due to DII buying,” Vijayakumar added.

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