InvestorQ : How has been the FII buying and selling in the month of September so far?
Riya Dwivedi made post

How has been the FII buying and selling in the month of September so far?

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shrinidhi Rajan answered.
3 months ago
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Foreign portfolio investors, who had infused more than Rs51,200 crore in August 2022, are still net buyers in September but a lot more subdued. The FPIs have now infused an amount of Rs8,638 crore in September 2022 so far, with just one week to go and it does look like this number could fall further from current levels. This has a lot to do with the extreme hawkishness of the Federal Reserve. If you look at recent events, the Fed hawkishness and recession fears have spread to more countries across the developed markets of UK and EU.

This chain of events has made the FPIs quite wary about investing in emerging markets like India since the risk adjusted returns are unlikely to be attractive. Going ahead, the uncertainty in China due to the political developments as well as the prospects of further rate hikes could impact FPI flows and we could see more pressure from these levels. In September, FPIs have stayed net buyers in debt too, which is slightly encouraging. FPIs are worried as the US economy continues to face high inflation levels of 8.5%.

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