FPIs stay web sellers in Oct as far as crude, US yields rise; pull out ‘3,825 cr’

Foreign Portfolio Investors (FPIs) have turned web sellers within the Indian market by pulling outRs 3,825 crore in October thus far.
In the previous two months, big shopping for was witnessed within the debt phase when FPIs had Rs 13,363 crore in September and Rs 14,376.2 crore in August.
However, thus far, in October, FPIs have pulled out Rs 1,494 crore, depositories’ knowledge confirmed. From equities, FPIs took out Rs 2,331 crore.

The complete web outflow stood at Rs 3,825 crore throughout October 1-22. V Okay Vijayakumar, the chief funding strategist at Geojit Financial Services, stated, “FPIs have sold software stocks worth Rs 5,406 cr in the first half of October even though the second quarter (Q2) results of software companies were good. So, this is a clear case of profit booking. FPIs have been buyers in financial services.”
Himanshu Srivastava, affiliate director (supervisor analysis) of Morningstar India, stated FPIs have most well-liked to remain on the sidelines, undertake a wait-and-watch strategy and proceed to ebook earnings alongside the way in which.
He additional added that there continues to be a priority amongst FPIs with respect to the tapering of simple liquidity after the US Federal Reserve hinted of a charge hike earlier than anticipated.
Also, issues reminiscent of rising oil costs, US bond yields and challenges to the Chinese financial system have been on their radar, thus protecting them on the tenterhook and stopping them from considerably investing in Indian equities.
“FPI flows October till date was mixed,” stated Shrikant Chouhan, head (fairness research-retail) at Kotak Securities.

Indonesia, the Philippines and Thailand reported FPI inflows of $617 million, $38 million and $679 million, respectively. On the opposite hand, Taiwan and South Korea reported FPI outflows of $2,956 million and $2,472 million, respectively, he added.
“Driven by sharp increase in energy prices globally, which can be key headwinds for the developed and emerging markets,” Chouhan stated.
— With PTI Inputs