- FPIs have turned buyers in November and are ₹107.81 crore in the green post Diwali.
- FPIs had offloaded equities worth ₹5,806 crore before Diwali.
- There was an investment of ₹5,328.1 crore a day after Diwali.
The FPIs had been net sellers in the first half of the month, having offloaded equities worth ₹1,416 crore till November 15. However, the trend has changed after FPIs invested a huge amount of ₹5,328 crore in a single day on November 13, followed by ₹1,523 crore on November 16.
The month of October had recorded the highest sell-off in equities by FPIs in the financial year at ₹24,548 crore. If we look at 2023, this was the second highest sell-off after January 2023 which recorded FPIs offloading equities worth ₹28,852 crore.
FPIs had also offloaded equities worth ₹14,768 crore in September 2023, ending a six-month streak of inflows in 2023. May 2023 had recorded the highest inflows in FY24 at ₹43,838 crore.
Source: NSDL, *November data as on November 16.
While there could be a lot of reasons for FPIs offloading, the sell-off had increased after the yield on the 10-year US Treasuries topped 5% for the first time since 2007. In addition to this, the geopolitical conflict in the middle east has also fueled the sell-off.
The banking and financial services and the information technology (IT) sector recorded a substantial sell-off.
Despite the sell-off in the last three months, the net investment in FY24 has been positive. FPIs have invested ₹1,16,586 crore in the country so far.
Analysts expect the sell-off to ease down as the yields soften and the Fed goes on hold for a longer period.
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