BLOG
Global uncertainties triggered FPI sell-off
FPIs buying spree seen post-election verdict turned into selling after announcement of union budget. Post election verdict, FPIs have poured nearly 75k crores in the secondary markets which helped Nifty to surpass 25000 levels in July. However, post rate hike by Japanese Central Bank, they have turned aggressive sellers and in last 3 weeks only FPIs have sold nearly 40k crores in secondary markets as Nifty lost nearly 1200 points from highs.
Also, couple of weak economic data points from US also didn’t help and the selling pressure was observed across the risk assets. During the last three weeks, FPIs have sold nearly $6 Billion from Taiwan, $2 Billion from South Korea compared to nearly $3 Billion outflows from India.
However, we believe with impending rate cuts in September, FPIs may turn net buyers once again in India. Also Indian equities are likely to witness inflows of nearly $3 Billion in the coming MSCI rebalancing during the August month end.
Disclaimer – I ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. I-Sec is acting as a distributor to solicit bond related products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. Investments in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein mentioned are solely for informational and educational purpose.
Related content
Blogs
Articles - Stocks
Advantages and Disadvantages of NPS
It is a long established fact that a reader will be distracted by the readable content of a page when looking at it...
Articles - Stocks
Advantages and Disadvantages of NPS
It is a long established fact that a reader will be distracted by the readable content of a page when looking at it...
Articles - Stocks
Advantages and Disadvantages of NPS
It is a long established fact that a reader will be distracted by the readable content of a page when looking at it...
Video
Video - Stocks
What is Book Value?
Book Value Explained – Find out what is book value in stocks in this video by ICICIdirect.com.
Video - Stocks
What is Book Value?
Book Value Explained – Find out what is book value in stocks in this video by ICICIdirect.com.
Video - Stocks
What is Book Value?
Book Value Explained – Find out what is book value in stocks in this video by ICICIdirect.com.