FIIs Dump Indian Equities: Net Sellers of Rs 14,794 Crore in June

FIIs Dump Indian Equities: Net Sellers of Rs 14,794 Crore in June

Foreign Institutional Investors (FIIs) have been relentless sellers of Indian equities in June, offloading a net amount of Rs 14,794 crore ($1.8 billion) so far this month, as per data from depositories.

This marks a sharp reversal from April and May, when FIIs were net buyers to the tune of Rs 3,629 crore and Rs 17,241 crore, respectively.

Rising Interest Rates, Recession Fears

The primary drivers behind the FII sell-off are rising interest rates globally and recession fears. Central banks worldwide, including the US Federal Reserve, are aggressively raising interest rates to curb inflation. This has led to a strengthening US dollar and made emerging market assets like Indian equities less attractive to foreign investors.

Global Economic Slowdown

Concerns over a global economic slowdown have also weighed on investor sentiment. The war in Ukraine, supply chain disruptions, and geopolitical tensions have raised the risk of a global recession, leading to a flight from riskier assets like stocks.

Indian Market Outlook

Despite the recent sell-off, analysts remain optimistic about the long-term prospects of the Indian stock market. The Indian economy is expected to remain resilient, aided by strong consumer demand and government spending. Corporate earnings are also forecast to improve in the coming quarters.

Key Points:

FIIs have been net sellers of Indian equities at Rs 14,794 crore in June so far.
This reversal comes after FIIs were net buyers in April and May.
Rising interest rates and recession fears are the primary drivers of the sell-off.
Despite the recent outflows, analysts remain positive on India’s long-term economic outlook.