Foreign portfolio investors dumped ₹25,586 crore of Indian shares in May due to various factors

From Mint: 2024-06-01 13:13:56

Foreign portfolio investors (FPIs) have been selling in Indian markets due to volatility from Lok Sabha elections, global cues, and outperformance in Chinese markets, leading to ₹25,586 crore outflow by May 31. Uncertainty over election outcomes, high US bond yields, and high valuations have contributed to the selling trend.

FPIs turned net buyers in Indian equities in March with ₹35,098 crore inflow but continued selling in debt markets due to high US bond yields. The trend reversed in April with ₹8,671 crore equities outflow but ₹10,949 crore in debt outflow. Long-term FPI outlook is positive, but near-term flows are impacted by global macroeconomic uncertainty.

FPIs turned sellers in January but bought ₹1.71 lakh crore in Indian equities in 2023. In February, ₹1,539 crore inflow into equities and ₹22,419 crore into debt markets was recorded. Strong global cues in December and US rate cut expectations in March triggered FPI inflows into India amid declining US bond yields.



Read more at Mint: Why did FPIs dump ₹25,586 crore worth of Indian shares in May—Explained with 4 key reasons