FPIs dump ₹10,355 crore in Indian markets as selling streak extends to June; Inflows diverted to THIS market instead

FPIs dump ₹10,355 crore in Indian markets as selling streak extends to June; Inflows diverted to THIS market instead

Foreign Portfolio Investors (FPIs) continued their selling streak in Indian markets, pulling out a net amount of ₹10,355 crore in June.
This marks the 11th consecutive month of net outflows by FPIs from the Indian equity markets.
The selling pressure from FPIs intensified towards the end of June due to concerns over rising interest rates and inflation globally, as well as geopolitical tensions.
The cumulative net outflow by FPIs in the first six months of 2023 now stands at a staggering ₹1.78 lakh crore.
Interestingly, while FPIs have been dumping Indian stocks, they have been diverting their inflows to other emerging markets, such as Indonesia and Brazil.
Indonesia has emerged as a particularly attractive destination for FPIs due to its strong economic growth and relatively stable currency.
Inflows into Indonesia’s stock market reached a record high of $1.1 billion in June, as FPIs sought to diversify their portfolios and tap into the country’s growth potential.
Analysts believe that the selling by FPIs in India is likely to continue in the near term, as global uncertainties persist and the US Federal Reserve remains hawkish on interest rates.
However, they also noted that the Indian economy is relatively resilient and that valuations in the Indian stock market have become more attractive after the recent correction.
As a result, they expect a gradual return of FPIs to Indian markets once the global headwinds subside.

Keywords:

FPIs
Foreign Portfolio Investors
Indian markets
Selling streak
Outflows
Inflows
Indonesia
Brazil