The foreign investors have been on a selling spree since October, though they reversed the trend in December ending up as net buyers. They had purchased shares amounting to Rs 15,446 crore in the month gone by.
In just two months of October and November they net sold domestic equities amounting to Rs 115,629 crore. For the full year ended December 31, they net bought equites worth just Rs 427 crore.
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Over the last 10 years, FIIs have been net sellers six times in January with the highest selling in 2022 at Rs 33,303 crore.
Commenting on the current trends, Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said that the relentless FII selling in the cash market continued last week and the foreign investors have been sellers on all days this month except January 2. “So far, through 17th January FIIs have sold equity for Rs 45498 crores through the stock exchanges. They bought for Rs 1101 crores in the primary market,” Vijayakumar said.In his view, any reversal of the FII flows will happen only after the market signals peaking of the dollar and US bond yields followed by their decline. Donald Trump, who is to assume charge on Monday as the US President remains a big unknown as his tariff policies which have created a lot of noise, are presently are not very clear, the
The dollar index, which is currently hovering around 109 against a basket of six top currencies, has appreciated by nearly 6% over the past three months.
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