In April, Indian equities valued at over ₹6,000 crore were sold by foreign portfolio

investors. In January 2024, Foreign Portfolio Investors (FPIs) engaged in aggressive selling of Indian equities. They first became net sellers in the Indian equity market in January 2024, but they later transformed into net buys.

Foreign portfolio investors (FPIs) have recently become net sellers of Indian shares in response to the most recent geopolitical situation in West Asia, which has caused investors to remove funds from their portfolios. According to data from the National Securities Depository Limited (NSDL), foreign portfolio investors (FPIs), who were net purchasers till a few days ago this year, have sold equities worth ₹6,304 crore in total.

Chief investment strategist at Geojit Financial Services Vikas Vijaykumar stated that while significant monetary tightening in the US has increased, There is less chance that the US Fed will lower interest rates. Vijaykumar stated, “This will keep bond yields elevated, which will lead to more outflows in both equity and debt.” “The fact that retail investors, HNIs, and DIIs are buying up all of the FPIs’ equities market selling is a good thing. The only thing that can regulate FPI sale is this.”

In January 2024, FPIs engaged in aggressive selling of Indian stocks, which later resulted in their becoming net purchases in the Indian equity market. They were net buyers in February

and March. Good advance GDP projections, managerial monetary tightening, political stability at the level of the central government, and signals that the central bank has tightened

monetary policy have all helped paint a positive picture of the Indian economy.

India’s total domestic production increased by 8.4% during the October-December quarter of the fiscal year 2023-2024, making it the fastest-growing major economy and likely to maintain its current growth trajectory. Foreign funds dropped local stocks sharply in January after buying them up in November and December.

In December, their total stock value was ₹66,135 crore. FPI inflows were ₹9,001 crore in November, according to NSDL data. To put it in perspective, the total amount received during the year was approximately ₹171,107 crore, with December accounting for over a third of that amount. Foreign portfolio investors (FPIs) provided substantial cash flows, which aided benchmark stock indices in their transition towards maximum points ever reached. FPI engagement in Indian shares was minimal prior to November, and they had become net sellers. In September and October, they sold ₹14,768 crore and ₹24,548 crore, respectively. Previous to this, data indicates that foreign institutional investors (FIIs) purchased Indian shares in March, April, May, June, July, and August for a total of ₹7,936 crore, ₹11,631 crore, ₹43,838 crore, ₹47,148 crore, ₹46,618 crore, and ₹12,262 crore, respectively.