Foreign investors pulled out Rs 21,612 crore (USD 2.56 billion) from the domestic equity market in November. The outflow has been attributed majorly to rising US bond yields, strengthening US dollar and expectation of a slowdown in the domestic economy.
The trend of net outflow continues for second straight month. FPIs recorded a massive withdrawal of Rs 94,017 crore (USD 11.2 billion). The total outflow in 2024 has reached Rs Rs 15,019 crore so far.
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V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, “FIIs continued their selling spree in November, too. A perplexing feature of the recent FII activity is their highly erratic nature. For instance, in the three days from 23th through 25th November, FIIs were buyers. But in the next two days FIIs again turned massive sellers having sold equity for Rs 16139 crores. FII selling in November is lower than that of October. This can be partly attributed to the reduced valuations caused by the correction in the market.”
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Himanshu Srivastava, Associate Director Manager Research, Morningstar Investment Research India said, “Looking ahead, the flow of foreign investments into Indian equity markets will hinge on several key factors. These include the policies implemented under Donald Trump’s presidency, the prevailing inflation and interest rate environment.”
(With PTI Inputs)
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