Foreign Investors See Worst India Asset Value Rout At $85 Billion In October

Foreign investors which began the month with assets under management of $930.5 billion ended the month with assets at $845.30 billion, according to data on NSDL collated by NDTV Profit.

Foreign investors have been net sellers to the tune of nearly Rs 1.5 lakh crore for the 30th consecutive day. The sell-off saw investors withdraw money from India and deploy in 'Trump Trade' and China. The China trade has since seen a slow withdrawal, while the 'Trump Trade' gained momentum going into election day, with the US market seeing a net inflow of $20 billion in a single day. 'Trump Trade' has also seen the dollar strengthen, wiping out asset return for foreign investors invested in emerging countries.

The maximum rout in asset value was seen in the oil and gas sector, which saw its value fall by $27.90 billion in just a month led by Reliance Industries Ltd., which saw its stock fall by 9.2% in the month of October.

This was followed by the financial services sector, which saw asset under management decline by $13 billion and auto and auto components, which saw asset value decline by nearly $10 billion in October alone.

Consumption slowdown has seen the fast-moving consumer goods sector lose asset value by $6.8 billion and consumer services by $5.19 billion.

IT stocks which recently saw some run-up, saw their asset value decline by $4.5 billion in October for the FPIs.

FPI outflows stood at $11.18 billion during the month. Which means the dollar strength has led to significant decline in the asset value of India investments by the foreign investors.

Oil and gas saw the maximum outflows at $3.1 billion, followed by financial services at $2.55 billion, auto and auto components at $1.37 billion and FMCG and consumer services saw net outflows of $1.2 billion and $1 billion. Though IT saw outflows of $553 million in October, it was marginal at $20 million in the second half of the month. Healthcare saw inflows of $276 million in the second half of October.