Are the foreign investors continued to be net sellers in the current week also?

In the previous week alone, the foreign portfolio investors or FPIs sold over Rs.5,000 crore. However, this trend has been pronounced in the last 6 months with March seeing the heaviest selling. IN fact, March represented the sixth consecutive month of FPI selling in Indian equities. FPIs have now pulled out around Rs.114,856 crore from Indian markets in FY22. Out of that amount, a huge Rs.48,252 crore of equities were sold in Mar-22 itself.

The FPI selling in Indian equities has exacerbated due to cost inflationary as reflected by the rising WPI inflation, global monetary tightness and the Russia-Ukraine war. The fact that India is a net importer of crude to the tune of 85% of daily oil needs is a big negative. With crude oil trading at above $120/bbl, this is a big challenge for the current account deficit. Geopolitical risk has also resulted in substantial risk-off selling by the FPIs in India.