FPIs turn net sellers, withdraw ₹977cr

New Delhi

Foreign Portfolio Investors (FPIs) reversed their buying trend this week, becoming net sellers in the Indian equity market with a net outflow of ₹977 crore, according to National Securities Depository Limited (NSDL) data.

Between December 16 and 20, FPIs began the week positively, purchasing equities worth ₹3,126 crore in the first two trading sessions. However, they sold equities worth over ₹4,103 crore in the latter half, turning the weekly net investment negative.

Despite the weekly outflow, FPIs remain net buyers in December, investing ₹21,789 crore so far, signaling continued optimism in India's economic prospects.

Market analysts attribute the recent selling to global factors, including concerns over central bank rate hikes, geopolitical uncertainties, and profit-booking after recent rallies. Ajay Bagga, a banking and market expert, noted, "This week saw 'risk-off' sentiment globally due to the Fed. Emerging markets, including India, faced headwinds from a strong US dollar and rising bond yields, leading to FPI outflows. The Rupee hitting an all-time low against the US dollar also contributed to the pressure."

Earlier, FPIs had withdrawn ₹21,612 crore in November and a substantial ₹94,017 crore in October. However, months like June and September saw strong inflows of ₹26,565 crore and ₹57,724 crore, respectively, showcasing mixed investment patterns throughout the year.

While this week ended on a negative note for FPIs, their overall positive investment for December highlights sustained confidence in India’s growth story amidst challenging global cues.