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FPIs Sell Rs 45,536 Crore in September as Large-Cap Valuations Improve
Foreign investors sold a large amount of Indian shares in September.
They still put money into new share offerings, suggesting they were choosing investments carefully rather than avoiding India altogether.
Higher US bond yields and worries about crude oil prices were among the reasons for the selling.
The market had already fallen for eight weeks in a row.
Below-normal rainfall also affected investor confidence.
As share prices fell, experts said large companies’ shares looked more attractively priced.
Indian institutions bought shares worth Rs 76,030 crore, helping support the market.
Investors will also watch companies’ second-quarter FY27 results.
Strong results and positive company outlooks could attract buyers.
Foreign portfolio investors sold Rs 45,536 crore of equities in September but invested Rs 9,676 crore through the primary market.
A US 10-year bond yield above 5.2 per cent and concerns about persistently high crude prices weighed on investor sentiment.
The Indian market recorded eight consecutive weeks of losses, while rainfall was reported to be 13 per cent below normal.
From September 28 to October 1, provisional equity selling was about Rs 34,965 crore; settled selling for corresponding reported activity was about Rs 27,962 crore.
Domestic institutional investors bought Rs 76,030 crore in cash equities during September, and analysts said the market correction made large-cap valuations more attractive.
- Who
- Foreign portfolio investors, domestic institutional investors and Indian companies.
- What
- FPIs sold Rs 45,536 crore of equities in September while investing Rs 9,676 crore through the primary market; DIIs bought Rs 76,030 crore in cash equities.
- Where
- The Indian equity market.
- When
- September; foreign selling intensified from September 28 to October 1 and continued into October.
- Why
- Rising US bond yields, concerns that crude prices could remain high, and below-normal rainfall weighed on sentiment; analysts said lower crude prices and bond yields could help reverse foreign selling.
Key facts
- FPI equity selling in September
- Rs 45,536 crore
- FPI primary-market investment
- Rs 9,676 crore
- DII cash-equity purchases in September
- Rs 76,030 crore, according to provisional NSE data
- Provisional selling, September 28–October 1
- About Rs 34,965 crore across four sessions
- Settled selling for corresponding reported activity
- About Rs 27,962 crore
- US 10-year bond yield
- Rose above 5.2 per cent
- Rainfall
- 13 per cent below normal
- Market losses
- Eight consecutive weeks
Quotes
Dr VK Vijayakumar
Chief Investment Strategist at Geojit Investments Ltd.
“This secondary-market selling versus primary-market buying suggests that foreign investors are not simply switching off India; they are becoming much more selective about where they deploy capital, a trend likely to continue into October.”
thehansindia.com
“Sustained FPI selling has significantly weakened the Indian market which witnessed eight consecutive weeks of losses. The poor monsoons this year with 13 per cent deficient rains also impacted sentiments.”
thehansindia.com
Sources
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