FPIs Stay Net Sellers of Indian Equities for Seven Consecutive Sessions

Overseas investors, known as Foreign Portfolio Investors (FPIs), remained net sellers of Indian equities for a week straight on Tuesday, while domestic institutional investors (DIIs) bought stocks worth Rs 7,000.68 crore.

According to provisional data from the National Stock Exchange (NSE), FPIs offloaded stocks worth Rs 5,729.60 crore.

In the last five sessions, FPIs have sold equities valued at Rs 44,742.58 crore, while domestic institutional investors have purchased shares worth Rs 46,674.39 crore. So far in October, FPIs have offloaded Rs 44,742.58 crore in stocks, including the sales on Tuesday, whereas domestic institutional investors mopped up stocks worth Rs 46,674.39 crore. In September, FPIs sold stocks valued at Rs 15,423.35 crore, while DIIs purchased stocks worth Rs 31,860.26 crore.

Foreign institutions have been net buyers of Rs 55,696 crore in Indian equities so far in 2024, according to data from the National Securities Depository Ltd., updated until the previous trading day.

The highest selling by FPIs occurred on October 3, when they offloaded equities worth Rs 15,243.27 crore, while DIIs recorded peak buying as the NSE Nifty 50 and BSE Sensex saw a steep fall following the Securities and Exchange Board of India’s curbs on futures trading and geopolitical tension in the Middle East.

The selloff in the Indian markets could be the result of a slowdown in the domestic economy rather than the reallocation of capital to China, according to Axis Bank's Chief Economist and Head of Global Research  Neelkanth Mishra. There is no direct correlation between foreigners selling domestic stocks and investing in Chinese equity, he said.