New Delhi: After two months of buying, foreign portfolio investors (FPIS) have changed clean sellers in October by issuing Rs 12,278 Crore from the Indian market.
In accordance with the data depositor, FPI issued Rs 13,550 Crore from equity but invested RS 1,272 Crore in the debt segment for October 1-29.
The total clean outflow reached Rs 12,278 Crore during the period reviewed.
FPI is a clean buyer in August and September.
“Foreign brokers such as Merril Lynch, UBS and Nomura have lowered India’s ranking because of excessive assessment.
This might encourage FPI to sell sustainably,” said V K Vijayakumar, head of investment strategist at Geojit Financial Services.
FPI has become a seller in the software for the first half of October.
This is a profit booking because they sit on a big profit.
However, they have become buyers at banks and cars where there is a convenience of judgment, he added.
Three IPOs are expected to collect RS 30,000 crore from the market in the next few days which are expected to be a highly subscribed and, therefore, there will be a very large restriction of money from the secondary primary market.
“This is another factor that drives FPI for sale.
Because FPI’s sales are large, the market has changed clearly,” he said.
FPI flowed in other developing country markets in October mixed, said Shrikant Chouhan, Head (Equity of Research-Retail) in the Securities box.
Indonesia, the Philippines and Thailand reported FPI inflows of $ 951 million, $ 8 million, and $ 564 million, respectively.
On the other hand, Taiwan and South Korea reported the FPI outflow of $ 2,633 million and $ 2,801 million, Chouhan said.
In connection with the FPI’s future flow, he said the flow is expected to remain fluctuating in developing country markets.
“On the front of the economy, RBI minutes reflects increased concerns about global inflation pressures and economic slowdown, especially in some developed countries, which are highlighted by several members, can have a spill effect on India,” Chouhan said.