FPIs Turn Net Sellers in September Amid Global Market Trends

FPIs Turn Net Sellers in September Amid Global Market Trends

VoM News Desk | September 9, 2023 | 11:53 AM IST | Breaking News | Follow on Google News

FPIs Turn Net Sellers in September Amid Global Market Trends. Image/Mint

September FPI Activity

Foreign portfolio investors (FPIs) have shifted to become net sellers in September, influenced by global factors impacting the Indian market’s performance. According to data from the National Securities Depository Ltd (NSDL), FPIs have sold ₹4,203 crore worth of Indian equities and have invested ₹3,636 crore across various asset classes, including debt, hybrid, debt-VRR, and equities, as of September 8.

Analyzing FPI Transactions

The ₹3,636 crore figure includes investments made through bulk deals and in the primary market. When excluding bulk deals and primary market investments, the net selling figure in the cash segment stands at ₹8,832 crore, as assessed by analysts.

Factors Behind FPI Selling in September

Rising US bond yields and a strengthening US dollar are the key factors influencing FPI behavior in September. These developments have had a negative impact on capital flows, prompting FPIs to shift from net buying to selling in the Indian cash market this month.

Impact of US Bond Yields and Dollar Strength

The surge in US bond yields and the sustained strength of the US dollar index have created short-term challenges for FPI flows into emerging markets like India. These factors have contributed to the reversal of FPI investment trends, with FPIs transitioning from net buyers over the past three months to net sellers in September.

Expert Perspective

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, commented on this trend reversal, noting that rising US bond yields and the upward trajectory of the dollar index are the primary drivers behind FPIs’ shift toward selling. These global financial dynamics have impacted FPI investment patterns for the month of September.

VoM News Desk

VoM News is an online web portal in jammu Kashmir offers regional, National & global news.