Foreign Investors Turn Net Sellers Of Indian Assets For Second Straight Month

Foreign Portfolio Investors (FPIs) have sold Indian stocks worth Rs 5,992 crore in October and become net sellers for the second straight month.

Foreign Portfolio Investors (FPIs) have withdrawn funds worth Rs 5,992 crore from Indian stock markets so far in October and become net sellers for the second straight month amid the strong US dollar index, weak rupee, and tightening of monetary policy.

In September, they sold Rs 7,624 crore worth of equities in India, data from National Securities Depository Limited showed. So far in 2022, they sold Rs 174,781 crore on a cumulative basis.

Barring July and August when they were net buyers, foreign portfolio investors (FPIs) had been selling equities in the Indian markets for a year now which started in October last year due to various reasons.

Tightening monetary policy in advanced economies including rising demand for dollar-denominated commodities, and strength in the US dollar had triggered a consistent outflow of funds from Indian markets. Investors typically prefer stable markets in times of high market uncertainty.