Foreign portfolio investors (FPIs) were net sellers in the domestic markets to the tune of Rs 949 crore in the first half of November.
As per the depositories data, they pulled out Rs 4,694 crore from equities between November 1-12.
At the same time, they pumped Rs 3,745 crore in the debt segment.
This translated into total net withdrawal of Rs 949 crore.
In October, FPIs remained net sellers at Rs 12,437 crore.
FPIs have been worried about higher valuations of Indian equities, which continue to trade near all-time high levels, said Himanshu Srivastava, associate director-manager research, Morningstar India.
Additionally, concerns over the global inflationary pressure and slowdown in some of the developed economies are also cause for concern, he said.
FPIs sitting on profit, would have chosen to book the same which is reflected in the flow trend over the last few weeks, he said.
“It appears that FPIs are exiting on valuation concerns. The important point to note is that the old scenario where FPIs representing smart money dictated market trends is over for the present…We are in a period of uncertainty,” said VK Vijayakumar, chief investment strategist at Geojit Financial Services.
Categories: Investing Professionals