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Equity benchmark indices declined in early trade on Monday, owing to relentless <keyword id="20520117" type="General" weightage="20" keywordseo="foreign-fund-outflows" source="keywords">foreign fund outflows</keyword>, selling in IT stocks and weak leads from the US markets. The BSE benchmark <keyword id="19896382" type="General" weightage="20" keywordseo="Sensex" source="keywords">Sensex</keyword> declined 156.72 points to 77,423.59 in early trade. The NSE <keyword id="19896381" type="General" weightage="20" keywordseo="Nifty" source="keywords">Nifty</keyword> dipped 64.25 points to 23,468.45. From the 30-share Sensex pack, Infosys, Tech Mahindra, HCL Technologies, Tata Consultancy Services, NTPC, Axis Bank, Tata Motors and IndusInd Bank were the major laggards. HDFC Bank, Tata Steel, Bajaj Finance and Asian Paints were among the gainers. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,849.87 crore on Thursday, according to exchange data. Foreign investors have pulled out Rs 22,420 crore from the <keyword id="19949396" type="General" weightage="20" keywordseo="Indian-equity-market" source="keywords">Indian equity market</keyword> so far this month, owing to high domestic stock valuations, increasing allocations to China, and the rising US dollar as well as Treasury yields. With this sell-off, Foreign Portfolio Investors (FPIs) have recorded a total outflow of Rs 15,827 crore in 2024 so far. Equity markets were closed on Friday for Guru Nanak Jayanti. "Even though Nifty has corrected 10.4 per cent from the peak there are no signs of a sustained recovery in the market. Relentless FII selling, earnings downgrades for the majority of stocks for FY25, and the consequences of the Trump trade are weighing on the market," V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said. In Asian markets, Seoul, Shanghai and Hong Kong traded higher while Tokyo quoted lower. The US markets ended lower on Friday. "Weak leads from Wall Street and rising US bond yields add to the anxiety," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said. Global oil benchmark Brent crude climbed 0.51 per cent to USD 71.40 a barrel. The BSE benchmark Sensex dropped 110.64 points or 0.14 per cent to settle at 77,580.31 on Thursday. The Nifty declined by 26.35 points or 0.11 per cent to 23,532.70. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/webstories/ntpc-green-energy-ipo-gmp-risk-factors-and-all-you-need-to-know/slidelist/115403791.cms">NTPC Green Energy IPO – GMP, risk factors and all you need to know</a><a href="https://www.businessinsider.in/business/auto/webstories/kawasaki-ninja-zx-4rr-launched-in-india-priced-at-9-42-lakh/slidelist/115332842.cms" target="_blank"></a> <a href="https://www.businessinsider.in/business/auto/webstories/kawasaki-ninja-zx-4rr-launched-in-india-priced-at-9-42-lakh/slidelist/115332842.cms" target="_blank">Kawasaki Ninja ZX-4RR launched in India priced at ₹9.42 lakh</a><a href="https://www.businessinsider.in/tech/mobile/news/indian-smartphone-shipments-grow-5-6-in-q3-2024-vivo-leads-the-market/articleshow/115329847.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/mobile/news/indian-smartphone-shipments-grow-5-6-in-q3-2024-vivo-leads-the-market/articleshow/115329847.cms" target="_blank">Indian smartphone shipments grow 5.6% in Q3 2024, Vivo leads the market</a>

Sensex, Nifty decline in early trade as FPIs selling spree, IT stocks dampen market sentiment

In a recent notification, the <keyword id="20004725" type="General" weightage="100" keywordseo="NSE" source="keywords">NSE</keyword> (National Stock Exchange) noted that markets will remain closed on Wednesday, November 20, 2024, on account of state elections taking place in Maharashtra. However, <keyword id="19895774" type="General" weightage="20" keywordseo="BSE" source="keywords">BSE</keyword> has issued no notification on this matter so far. However, given how both the exchanges largely operate in sync, BSE is likely to declare a holiday as well. Before the elections, both BSE and NSE will be shut for trading on November 15 as well, on account of <keyword id="23718443" type="General" weightage="20" keywordseo="Guru-Nanak-Jayanti" source="keywords">Guru Nanak Jayanti</keyword>. Next month, the bourses will remain closed for regular trade on Christmas, i.e., December 25. Earlier this week, Brihanmumbai Municipal Corporation (BMC) mandated that all businesses and workplaces in Mumbai should grant paid leave on November 20, 2024, to all its employees so that they can participate in state elections. Failure to do so could mean penalties for employers. All the 288 states in the Maharashtra state assembly are set to go to polls in a single phase on November 20. <h2>Markets close the week on muted note </h2>Both Nifty and Sensex closed the week on a damp note, with Nifty dipping 0.21% to close at 24,148.20 points. On the other hand, Sensex also slipped below the 80,000 mark to close the week at 79,486.32 points. Of the 50 stocks that constitute Nifty, 23 stocks advanced during the day, while 27 saw declines. However, this week has not been all that bad for the markets, with Nifty rising 0.31% and Sensex inching up 0.65% during the last 5 days. All broad market indices fell during today's trade, with smallcaps falling by over 1.5%, while midcaps also closed the day over 1% down. As for sectoral indices, most of them ended the week in reds, with realty and media losing over 2% during trading today. Pharmaceuticals, healthcare, and consumer durables recorded marginal upticks during the day, inching up by 0.07%, 0.22%, and 0.41%, respectively. FIIs (<keyword id="19932515" type="General" weightage="20" keywordseo="foreign-institutional-investors" source="keywords">foreign institutional investors</keyword>) continued their selling spree today as well. In this month so far, FIIs have been net cash sellers, offloading around Rs 16,445.49 crore. DIIs (domestic institutional investors) have stepped in to maintain some balance by becoming net buyers worth Rs 12,265.74 crore in November till date. Shrikant Chouhan, Head Equity Research, Kotak Securities, explains that global market sentiment saw sharp volatility in the aftermath of Republicans winning all three branches of the US government, resulting in rising US bond yields and the dollar, as well as the US equity markets beating most EMs. Meanwhile, the Q2 FY25 earnings season continued to remain weak, with more misses than hits observed. <keyword id="20993056" type="General" weightage="20" keywordseo="FPI-flows" source="keywords">FPI flows</keyword> are expected to remain volatile for some time to come. Amidst emerging markets, only Brazil saw inflows worth $115 million between November 1 and 7, 2024.

Markets to remain shut on November 20 due to Maharashtra elections

<ul><li>In the last 12 months, FPIs have sold twice as much as they did in 2008 during the <keyword id="83197" type="General" weightage="20" keywordseo="global-financial-crisis" source="Orion">global financial crisis</keyword>.</li><li>June was the worst month, recording the highest sell off in 2022.</li><li>The exodus of <keyword id="58959" type="General" weightage="20" keywordseo="foreign-investors" source="Orion">foreign investors</keyword> has left a huge scar on the markets as <keyword id="6484188" type="General" weightage="20" keywordseo="sensex" source="Orion">Sensex</keyword> corrected nearly 11% in 2022.</li></ul>Foreign portfolio investors or FPIs have been selling their investments in the Indian equity markets even more aggressively than what was witnessed during the 2008 global financial crisis. In fact, this selloff in the last 12 months is twice as much as that seen in 2008, when the sub-prime crisis hit the US, sinking banks, financial markets and more. “The ongoing <keyword id="725142" type="General" weightage="20" keywordseo="fpi" source="Orion">FPI</keyword> (foreign portfolio investors) selling in Indian equities is turning out to be the highest selling spree since the global financial crisis of 2008 with trailing 12 months FPI cumulative selling in the secondary market of $53 billion vs $28 billion during the global financial crisis,” said a report by ICICI Securities. The trend is the same with foreign institutional investors or FIIs as well. June is the worst month of 2022 till date, which saw the highest selloff. FIIs have pulled out more than ₹51,000 crore ($6.33 billion) in June from the Indian markets, including equity, debt and hybrid assets. This compares with ₹50,000 crore that they invested in the whole of 2021. Indices correct sharply The exodus of foreign investors has left a huge scar on the markets as Sensex corrected nearly 11% in 2022. “Large scale outflows from Indian equities by FPIs has largely been driven by the fear of aggressive quantitative tightening by the US central bank to tame inflation and relatively higher valuations of Indian equities,” said analysts at ICICI Securities. Rising inflation because of the Russia-Ukraine crisis has made foreign investors lose appetite for Indian assets. Risky equity markets are making them shift funds to US debt markets, which are much secture and offer attractive returns amid rising interest rates scenario. Most of the FIIs in India are <a href="https://www.businessinsider.in/business/news/four-of-every-10-fiis-are-from-the-us-most-others-are-from-tax-havens/slidelist/92510427.cms">from the US as per recent data</a>. Resurgence in the US dollar, disappointing global economic data and aggressive monetary policy stances by several central banks across the world had led to concerns about slowing economic growth and the possibility of a recession next year. Apart from Indian equity markets, global indices too have been crashing and some of them have turned bearish. IT, financial services bear the brunt A bulk of the selling has been in sectors like financial, IT, FMCG and other services and construction materials whereas metals, power, discretionary consumption and telecom saw an inflow, according to ICICI Securities. Table: FPI holdings fall in 2022 <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Indices </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FPI holdings </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nifty 50 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">23.1% (-1.8%) </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nifty Next 50 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">15.1% (-1.5%) </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nifty Midcap </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">14.6% (-1.3%) </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nifty Small cap </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">12% (-1.1%) </td></tr></tbody></table>Source: ICICI Securities However, after the sharp fall, the valuations look good, which might result in renewed investor interest. “Valuations have rationalized significantly from October 2021 levels and the fear of a structural increase in inflation is reducing as global commodity prices decline over the recent past, which should build confidence of slowing down of FPI outflows incrementally,” said the report while mentioning prevailing risk from elevated retail inflation. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/ambani-and-adani-valuations-surge-while-tatas-birlas-see-major-declines-in-the-first-half-of-2022/articleshow/92593235.cms">Ambani and Adani valuations surge while Tatas, Birlas see major declines in the first half of 2022</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/mukesh-ambani-anil-agarwal-lose-1-17-lakh-crore-in-a-few-hours-as-government-slaps-two-different-oil-taxes/articleshow/92591441.cms">Mukesh Ambani &amp; Anil Agarwal lose ₹1.17 lakh crore in a few hours as government slaps two different oil taxes</a>

Are we worse off than we were in 2008? Foreign investors seem to think so

<ul><li><keyword id="6389755" type="UNKNOWN" weightage="20" keywordseo="foreign-portfolio-investors">Foreign portfolio investors</keyword> pulled out nearly ₹88,000 crore from the Indian market, likely triggered by COVID-19 fears.</li><li>However, for the first time in 2020, the net <keyword id="725142" type="ORGANIZATION" weightage="20" keywordseo="FPI">FPI</keyword> flow turned positive in May, standing at ₹13,179 crore as of May 29.</li><li>Future FPI flows depend on how the COVID-19 pandemic peaks in India, which is expected to happen sometime in June or July.</li></ul>The net flow from <keyword id="294222" type="ORGANIZATION" weightage="20" keywordseo="Foreign-Portfolio">foreign portfolio</keyword> investors (FPIs) in India turned positive for the first time in 2020, hinting that the investor sentiment has started improving in the market. In the first four months of 2020, FPIs pulled out nearly ₹88,000 crore from the Indian market. The net FPI flow in May is positive despite the fact that <keyword id="58959" type="ORGANIZATION" weightage="20" keywordseo="Foreign-investors">foreign investors</keyword> pulled out ₹9,000 crore in the time between Prime Minister Narendra Modi’s ₹20 lakh stimulus package announcement, and Finance Minister Nirmala Sitharaman revealing the details of the package. <div type="Article" hostid="261" msid="75807397" title="Foreign investors sold shares worth over a billion dollars in the last four trading days⁠ while India was unveiling its ₹20 lakh crore stimulus" mstype="2" mssubtype="0"></div> According to data obtained from the stock exchanges, net FPI flows till May 29 stood at ₹13,179 crore in the cash market. In the index and stock futures, the overall flow remained negative. However, on a cumulative basis, the total FPI flows remained positive at ₹7,483 crore. <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[<div class="flourish-embed flourish-chart" data-src="visualisation/2610698" data-url="https://flo.uri.sh/visualisation/2610698/embed"></div>]]></cdata></div> Why are FPIs important for India? FPIs are important for developing economies like India as they bring in a considerable amount of money in the Indian market. They make up for the shortfall of funds from domestic investors and are often the catalysts behind the market’s performance. FPIs include hedge funds, investment banks, mutual funds and pension funds. Investment in Hindustan Unilever behind the positive FPI flows in May The saving grace for the Indian stock markets was Hindustan Unilever (HUL). GlaxoSmithKline (GSK) sold HUL stock worth ₹27,937 crore on May 7 to Societe Generale. On the same day, foreign investors poured in more than ₹19,000 crore into the Indian market. Without the investment in HUL, the net FPI flows would have remained negative even in May. After a massive selling spree, FPIs have come back to invest In the 5 days since PM Modi’s announcement of the stimulus package, FPIs pulled out ₹9,000 crore from the Indian market. However, since then, FPIs have come back with a net positive FPI flow of ₹3,789 crore. It is likely that the staggered rollback of the COVID-19 lockdown across several states has contributed to improving FPI confidence. It remains to be seen if the situation improves in June, especially since reports suggest that COVID-19 could peak in India in late June or early July. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/markets/news/foreign-investors-fpi-sold-shares-despite-modi-20-lakh-crore-stimulus/articleshow/75807397.cms">Foreign investors sold shares worth over a billion dollars in the last four trading days⁠ while India was unveiling its ₹20 lakh crore stimulus</a> <a href="https://www.businessinsider.in/policy/economy/news/moodys-warns-that-india-government-debt-may-rise-sharply/articleshow/75616605.cms">India’s government debt could mount to 81% of GDP by 2024 even at the pre-COVID rate of growth, warns Moody’s</a> <a href="https://www.businessinsider.in/finance/news/india-inx-all-set-to-launch-inr-usd-futures-and-options-contracts-heres-what-it-means-and-why-its-important/articleshow/75616009.cms">India INX all set to launch INR-USD futures and options contracts – here’s what it means and why it’s important</a>

Net monthly inflow from foreign investors turns positive for the first time in 2020 — thanks to GSK deal with Societe Generale

<ul><li>Despite Indian government’s efforts to restart the Indian economy, foreign portfolio investors (FPIs) have exited the Indian markets in droves.</li><li>Over 90% of the total ₹9,600 crore <keyword id="725142" type="ORGANIZATION" weightage="20" keywordseo="FPI">FPI</keyword> sell-off in May has happened since Narendra <keyword id="6354642" type="PERSON" weightage="20" keywordseo="Modi">Modi</keyword>’s announcement of ₹20 lakh crore package on May 12.</li><li>Global investment banks Nomura and Goldman Sachs have predicted that the Indian GDP will fall by 5% in 2020.</li></ul>Foreign portfolio investors (FPIs) remain unimpressed with Narendra Modi government’s ₹20 lakh crore stimulus package for India Inc. Since the May 12 announcement, FPIs have sold ₹9,000 crore in cash stocks in the Indian markets. According to data obtained from stock exchanges, FPI selling activity picked up steam on May 12 when PM Modi announced a ₹20 lakh package to restart the Indian economy. “With the fifth and final economic package announced, no silver bullets to be found,” said global investment bank Nomura in its latest report dated May 17. India may see a “deeper recession” in the short term Global investment bank Goldman Sachs said that most of the reforms announced by the Indian government will have an impact in the medium term while the short term may see a "deeper recession", and added that the country's real GDP growth may fall 5% in the current financial year ending March 2020. Echoing similar sentiments, Nomura said, “The government has used the cover of the COVID-19 crisis to plough through long pending, politically sensitive structural reforms. As a result, the package may fall short of mitigating the near-term existential crisis for businesses and workers, but it is better designed to improve India’s medium-term growth potential and attract long-term risk capital.” “As a consequence, we maintain our GDP growth projection for 2020 at -5% year-on-year,” Nomura added further. Barring investment in Hindustan Unilever, FPIs have been bearish on India in May According to data obtained from the stock exchanges, GlaxoSmithKline sold ₹27,937 crore worth of Hindustan Unilever (<keyword id="44863" type="CITY" weightage="20" keywordseo="HUL">HUL</keyword>) stock in bulk deals on May 7. However, It is likely that most of that was French investor Societe Generale buying shares of HUL from GSK. On this day, FPIs poured in more than ₹19,000 crore (approx. $2.53 billion) into the Indian market, while Domestic Institutional Investors had a net buy of more than ₹3,800 crore. “Data speaks. FPIs went on a massive selling spree since May 12 and slammed the markets on the economic package announcement,” Deepak Sawhney, an independent data analytics expert <a href="https://www.thehindubusinessline.com/markets/stock-markets/fpis-exit-markets-after-mega-economic-package/article31611969.ece">told</a> The Hindu BusinessLine. Overall, barring the investment in Hindustan Unilever on May 7, FPIs have sold more than ₹9,600 crore in Indian stocks in 10 trading sessions. More than 90% of this selling has happened since PM Modi’s ₹20 lakh crore stimulus package announcement. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/markets/news/indusind-icici-bank-hdfc-bank-and-sbi-among-top-10-losers-in-nifty-bank/articleshow/75805726.cms">From IndusInd to ICICI Bank to SBI ⁠— banks were among the worst-hit despite the government pause on new bad loans</a> <a href="https://www.businessinsider.in/finance/news/india-puts-a-pause-on-new-bankruptcy-cases-for-a-year-and-other-changes-that-will-cap-the-rise-in-bad-loans/articleshow/75785508.cms">India puts a pause on new bankruptcy cases for a year ⁠— and other changes that will cap the rise in bad loans</a> <a href="https://www.businessinsider.in/policy/economy/news/finance-minister-nirmala-sitharaman-final-stimulus-plan-to-boost-gdp-of-india/articleshow/75784571.cms">India's Finance Minister reveals the final lot of Modi's economic stimulus programme</a>

Foreign investors sold shares worth over a billion dollars in the last four trading days⁠ while India was unveiling its ₹20 lakh crore stimulus

The great FII or FPI sell-off is in progress. They have sold continuously over the last twelve-month period barring for September 21 when they were net buyers to the extent of Rs 913 crore. Fortunately for the markets, our domestic institutions have developed muscle power in the form of a strong SIP base to counter this selling. How long this would continue is anybodys guess. The last time that the <keyword id="6368141" type="General" weightage="100" keywordseo="fiis" source="Orion">FIIs</keyword> bought on a net basis for the year was in 2019 and 2020 when they invested Rs 40,000 crore and Rs 64,000 crore, respectively. At this time, domestic institutions also bought 42,000 crore in 2019 but sold 36,000 crore in 2020. In 2021, FIIs sold Rs 93,000 crore while domestic funds bought 95,000 crore. In the current year till date, FIIs sold Rs 2.67 lakh crore and Domestic institutions bought 2.15 lakh crore. What has led to this massive sell-off is the first question that comes to mind. The first and foremost reason is of course inflation which is at a record over 40 year high in the US and is threatening to continue to rise. Gas prices and now mortgage rates are hitting the normal citizens in the under-belly. They have both risen very fast and are at levels which are close to double compared to the last six months. With such high outgoings, things are unlikely to improve as the <keyword id="45672" type="General" weightage="50" keywordseo="fed" source="Orion">FED</keyword> raises interest rates to keep inflation under control. With a 75-basis point hike in the previous week and another similar hike imminent in six weeks' time, the rates would be at 2.25-2.5 per cent by July end. Unthinkable for the US which believed that inflation would never hit them in the near future. The next question that comes to mind is why such sharp selling had to be done. <keyword id="3658" type="General" weightage="50" keywordseo="india" source="Orion">India</keyword> as a market has outperformed the US markets and investments in India even though we are at a 52-week low as of Friday is far better than what the US has done during the same period. Incidentally, the US is also at a 52-week low. While the Indian benchmark indices on a year-to-date basis have seen BSESENSEX lose 11.83 per cent and <keyword id="6354813" type="General" weightage="50" keywordseo="nifty" source="Orion">NIFTY</keyword> lose 11.87 per cent, Dow Jones has lost a massive 18.09 per cent. <keyword id="6357328" type="General" weightage="50" keywordseo="nasdaq" source="Orion">NASDAQ</keyword> has lost much more and is now down 30.98 per cent. The technology sector and particularly companies which gained handsomely when Covid-19 was amongst us have reported sharp drop in business and also reported losses in many cases. This has led people to believe that probably companies involved in e-commerce are just not in favour any more. Post normalcy, markets believe that the business model of these e-commerce companies is under tremendous pressure. Shares from these sectors have lost big time in the US and part of the meltdown is visible even in India. FIIs are busy encashing gains in India so that they are able to reduce their overall exposure at a time when global markets are under pressure. With Indian markets still giving positive returns, sales here are of the first priority. How long and up to what level would be debatable. Domestic funds have been able to keep pace with sales so far. Whether this would continue indefinitely is not sure. The positive fact however remains, post Covid-19 the new investors who have come to the markets are giving substantial muscle power to domestic funds and helping in facing the onslaught. Every person has his day, and its not far before the day would come where domestic institutions would sell shares to FIIs and FPIs on their terms and conditions. In this global meltdown, even the Indian Rupee has held its ground quite well. While we have lost some ground against the Dollar, we have gained against quite a few other currencies including the pound and the euro. In the current Russia-Ukraine war, we have managed our oil purchases quite well and a good crop is helping in this world food crisis. What next? Expect FIIs to stop selling sooner than later and look at Indian equities all over again. The reducing differential between interest rates would be another reason to look at the country. Further the fact that India has one of the best growths amongst global economies is yet another reason. I strongly believe that before the calendar year is over, FIIs will be back on a buying spree in the country. Wait for that to happen and see the markets gain. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/agniveer-why-are-thousands-of-youth-up-in-arms-against-the-agnipath-scheme/articleshow/92284069.cms">Why are thousands of youth up in arms against the Agnipath scheme?</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/here-are-the-biggest-father-children-run-businesses-in-india/slidelist/92279727.cms">From Nadars to Premjis to Ambanis — here are the 10 biggest father-children run businesses in India</a>

FIIs sold off every month in the last one year barring September 2021

New Delhi, May 19 () Foreign investors turner net sellers in March quarter and pulled out USD 6.4 billion from the Indian equity markets largely due to the COVID-19 outbreak and ensuing risk-averse environment, a Morningstar report said. In comparison, foreign portfolio investors (FPIs) bought net assets worth USD 6.3 billion in three months ended December 2019. FPIs were net buyers in January (USD 1.71 billion) and February (USD 265 million). They, however, went on a selling spree in March as they sold net assets worth USD 8.4 billion. "The uncertainty over the gravity of the pandemic's impact on the global economy and financial markets worldwide triggered a flight to safety among foreign investors as they rushed to exit from relatively riskier investment destinations, such as emerging markets like India," the report noted. FPIs had started the quarter on a cautious note on account of brewing geopolitical tension between US and Iran and fast-changing trends in US-China trade situation. But they had gradually regained their risk appetite as these concerns started to wane, it said. Such investors went on a buying spree in the Indian equity markets after the US and China signed a trade deal, thus putting the trade war between them on a pause. Further, positive sentiments around the budget and the Reserve Bank of India's (RBI) decision to maintain an accommodative stance in its monetary policy continued to attract foreign investments. However, as the COVID-19 pandemic started to tighten its noose across the globe, foreign investors turned risk-averse, it said. Cumulatively for the March quarter, FPIs were net sellers in the Indian equity markets to the tune of USD 6.4 billion, which is in sharp contrast to the previous quarter, when they bought net assets worth USD 6.3 billion. As of the quarter ended March 2020, the value of FPI investments in Indian equities stood at USD 281 billion, which is considerably lower than the USD 432 billion, recorded in the December quarter. This is the lowest in the past six years, with the previous low being USD 238 billion at the end of March 2014, the report said. Consequently, FPIs' contribution to Indian equity market capitalisation also fell to 18.7 per cent from 19.8 per cent in the previous quarter. Foreign investors continued to flee the Indian equity space even in the month of April, though the amount of net outflows dropped substantially compared to the preceding month. They sold net assets worth USD 904 million through the month. "The sharp drop in net outflows could be attributed to India gaining prominence among foreign investors for doing well with regards to containing the coronavirus' aggressive spread," the report said. In addition to that, measures announced periodically by the government and the RBI to revitalise the sagging economy resonated well with investors, it added. FPIs made a strong comeback in May and turned into net buyers as they pumped in net assets worth USD 2.8 billion (till May 12) in the Indian equity markets. "The correction in Indian equities and sharp depreciation of Indian rupee against greenback has seemingly provided a good entry point for investors," it said. Going ahead, the report said that investors will be closely watching the developments related to selective relaxation in the lockdown and a gradual opening of economic activity in the country and how quickly India gets back on the path of economic growth. "They will continue to watch the coronavirus, its spread, and its likely impact on the economy while making investment decisions in India." It further said that India would continue to witness a rotational trend. Hence, bouts of sharp net outflows or net inflows cannot be overruled. "One could expect this trend to stabilise when the situation on the coronavirus front normalises or shows signs normalisation," it added. SP ANS ANS

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