InvestorQ : How did FPIs turn from net buyers to net sellers in the month of September 2022?
Katherine Gonsalves made post

How did FPIs turn from net buyers to net sellers in the month of September 2022?

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rhea Babu answered.
1 month ago
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To an extent, it can be said that the foreign portfolios disappointed in the month of September. They were net buyers till the third week of September but subsequently sold close to $2.3 billion worth of equities in the last 8 trading sessions of the month. Here is a quick summary of the FPI selling in the month of September 2022.

FPI Flow

Date

FPI Flows

(Rs Crore)

Cumulative flows

(Rs Crore)

FPI Flow

($ billion)

Cumulative flow

($ billion)

01-Sep-22

4,259.67

4,259.67

534.34

534.34

02-Sep-22

-2,296.99

1,962.68

-289.31

245.03

05-Sep-22

-1,284.92

677.76

-161.04

83.99

06-Sep-22

263.62

941.38

33.00

116.99

07-Sep-22

1,704.81

2,646.19

213.40

330.39

08-Sep-22

111.05

2,757.24

13.89

344.28

09-Sep-22

2,836.17

5,593.41

355.99

700.27

12-Sep-22

2,274.84

7,868.25

285.66

985.93

13-Sep-22

1,696.40

9,564.65

212.91

1,198.84

14-Sep-22

4,573.71

14,138.36

578.48

1,777.32

15-Sep-22

-1,374.66

12,763.70

-172.73

1,604.59

16-Sep-22

-679.49

12,084.21

-85.38

1,519.21

19-Sep-22

-3,476.73

8,607.48

-435.58

1,083.63

20-Sep-22

732.25

9,339.73

91.92

1,175.55

21-Sep-22

1,804.05

11,143.78

226.42

1,401.97

22-Sep-22

-278.50

10,865.28

-34.85

1,367.12

23-Sep-22

-2,227.44

8,637.84

-275.93

1,091.19

26-Sep-22

-2,600.04

6,037.80

-321.32

769.87

27-Sep-22

-4,651.95

1,385.85

-570.26

199.61

28-Sep-22

-3,039.94

-1,654.09

-373.59

-173.98

29-Sep-22

-2,096.09

-3,750.18

-255.93

-429.91

30-Sep-22

-3,873.48

-7,623.66

-473.17

-903.08

As can be seen in the above table, for September 2022, the FPIs were net sellers to the tune of Rs7,624 crore in Indian equities. Ironically, the FPIs were net buyers at the end of 3 weeks but sold over $2.3 billion of equities in just about 8 trading sessions after the Fed sustained its very hawkish tone after hiking rates by 75 bps on 3 successive occasions. This is a kind of an anti-climax after the $6.44 billion that foreign portfolio infused into Indian equities in the month of August 2022 and a much smaller $618 million infused in July 2022.

However, FPI selling was extremely pronounced between October 2021 and June 2022. During that period of 9 months, the FPIs had pulled out $34 billion from Indian equities. At this point, it is the combination of the very hawkish tone of the Fed, BOE and ECB that is doing the damage. There are distinct fears that so much of global hawkishness would most likely translate into recession, which has the markets worried.

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