Foreign portfolio investors (FPIs) have turned net sellers in the Indian market by pulling out Rs 3,825 crore in October so far.
In the past two months, huge buying was witnessed in the debt segment when FPIs had Rs 13,363 crore in September and Rs 14,376.2 crore in August.
However, so far, in October, FPIs have pulled out Rs 1,494 crore, depositories' data showed.
From equities, FPIs took out Rs 2,331 crore. The total net outflow stood at Rs 3,825 crore during October 1-22.
V K Vijayakumar, chief investment strategist at Geojit Financial Services
FPIs have sold software stocks worth Rs 5,406 crore 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, associate director (manager research) of Morningstar India
FPIs have preferred to stay on the sidelines, adopt a wait-and-watch approach and continue to book profits along the way. There continues to be a concern among FPIs concerning the tapering of easy liquidity after the US Federal Reserve hinted of a rate hike sooner than expected.
Also, concerns such as rising oil prices, US bond yields and challenges to the Chinese economy have been on their radar, thus keeping them on the tenterhook and preventing them from substantially investing in Indian equities.
Shrikant Chouhan, head (equity research-retail) at Kotak Securities
FPI flows from October till date was mixed. Indonesia, Philippines and Thailand reported FPI inflows of $617 million, $38 million and $679 million, respectively. On the other hand, Taiwan and South Korea reported FPI outflows of $2,956 million and $2,472 million, respectively.
Driven by a sharp increase in energy prices globally, which can be key headwinds for the developed and emerging markets. Any increase in the rate by the US Federal Reserve soon would also act as key headwinds for overall flow in the emerging markets.
(With PTI Inputs)