How much have FIIs sold in the Indian markets during the month of January 2022?

A combination of factors has resulted in aggressive selling by FIIs in the month of January 2022. These included factors like the Fed hawkishness, rising input inflation, falling operating margins in Q3, valuation concerns, cheaper Asian markets etc. With one trading day to go for Jan-22, FPIs have already pulled out Rs.28,243 crore from Indian equities. This is one of the sharpest sell-off seen by the FPIs in any month in recent memory.

Of course, it was not just selling all the way for the FIIs. They did infuse Rs.2,210 crore into debt and Rs.1,696 crore into hybrid positions, but these paled in comparison to the selling in equities during January 2022. Incidentally, this is the fourth consecutive month that FPIs will be net sellers in equities. Unlike in the last few months, there were hardly any IPO flows in Jan-22. At a macro level, FIIs are apprehensive about the end of easy money policies.