FPIs sold more than $3.5 billion of Indian equities in August and September but turned buyers in October to the tune of $780 million. The outflows also trimmed India’s year-to-date inflows by half to $3.7 billion.(Reuters)
In the longest selling streak by overseas funds in more than six months, foreign portfolio investors (FPIs) have offloaded equities worth $855 million in the last 11 sessions, reports Yoosef KP in Mumbai. Consequently, the Indian currency has been under pressure and slipped to its lowest level in two months — 66.6675 to the dollar — on Thursday before closing at 66.56. The currency has dropped 2% in November, the worst performance in Asia even as foreign holdings of rupee-denominated bonds have fallen by $558 million, the most since May, data compiled by Bloomberg shows.
On Thursday, foreign funds sold stocks worth $60 million in the cash segment on Thursday, provisional data from stock exchanges showed. In the last one month, the Sensex has shed 5.5% by wiping out Rs 2.5 lakh crore of investors wealth, Bloomberg data showed.
The Indian markets have seen the second-highest selling by FPIs this month after South Korea (-$964 million). Other markets like Taiwan, Thailand, and Indonesia also saw net outflows in the range of $150-400 million. Market watchers attribute the selling to the anticipated hike in US interest rates and muted corporate earnings. Apprehensions the reform process may be stalled with the government not able to carry the Opposition with it also left investor interest subdued. FPIs sold more than $3.5 billion of Indian equities in August and September but turned buyers in October to the tune of $780 million. The outflows also trimmed India’s year-to-date inflows by half to $3.7 billion.
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