How has the FII buying / selling been like in the month of February so far?

Foreign portfolio investors or FPIs pulled out more than Rs.35,200 crore from Indian markets in the month of February with one more trading day to go. The total equity pull-out stands at $29 billion for FY22, of which $22 billion has exited just in the last 5 months since Oct-21. That is clearly a lot of concentrated selling in the Indian equity markets at a time when the other Asian markets were actually seeing capital inflows.

The FPI selling was triggered by the Fed's decision to get hawkish, but more importantly due to the ongoing war between Russia and Ukraine. Also, the pace of outflows increased from EMs like after the US Fed announced a hawkish monetary trajectory. With the input costs impacting the operating profits in Q3, most of the foreign investors are worried about market valuations. The sharp fall in digital IPOs has only added to the bearishness of FPIs.