FPIs dump Indian equities worth over ₹ 35,000 cr. in May so far

Apart from equities, FPIs withdrew a net amount of ₹6,133 crore from the debt market

Exodus of foreign money from the Indian equity markets continues unabated with FPIs pulling out more than ₹35,000 crore so far this month on concerns over the prospects of more aggressive rate hike by U.S. Fed and appreciation of the dollar.

With this, net outflow by Foreign Portfolio Investors (FPIs) from equities reached ₹1.63 lakh crore so far in 2022.

Going ahead, FPIs flow in India is to remain volatile in the near term, given the headwinds in terms of elevated crude prices, inflation, tight monetary policy, among others, said Shrikant Chouhan, Head - Equity Research (Retail), Kotak Securities.

"Since the mother market, U.S., is weak and dollar is strengthening, FPIs are likely to continue selling in the near term," V K Vijayakumar, Cheif Investment Strategist at Geojit Financial Services, said.

Foreign investors remained net sellers for seven months to April 2022, withdrawing a massive net amount of more than ₹1.65 lakh crore from equities.

After six months of selling spree, FPIs turned net investors in the first week of April due to correction in the markets and invested ₹7,707 crore in equities.

However, after a short breather, once again they turned net sellers during the holiday-shortened April 11-13 week, and the sell-off continued in the succeeding weeks as well.