How has the FII buying / selling in India been like in Indian equities in January 2022?

In fact, the month of January 2022 has seen one of the worst sell-offs in recent memory by the FIIs. If you look at the last 3-4 months, the FPIs have sold close to $9 billion in Indian equities, which is the worst sell-off since 2016 in the Indian equity markets. This is also the biggest selling since recovery began in March 2020. It is also raising questions about the sustainability of the rally in stock market indices.

Let us look at January 2022 in particular. January 2022 has been responsible for most of the outflows of last 4 months. FPIs sold Rs.28,259 crore worth of equities in since the start of Jan-22. That is half the outflows at the peak of the pandemic month. Domestic investors are buying, but their influence is still limited. Equity selling is magnified by like actions of the FPIs in the futures and options market. That is what makes the overall impact big.