How was the FII investments in the month of November 2021 so far?

Foreign portfolio investors were net sellers to the tune of Rs.949 crore in the first 2 weeks of Nov-21. In fact, there were two contrary trends. The FPIs pulled out Rs.4,694 crore from equities but at the same time they also pumped in Rs.3,745 crore into debt on reduced rate differential fears. FPIs had net sold overall Rs.12,437 crore in Oct-21.

FPI selling in equities has been driven by several factors. For example, there have been consistent concerns over valuations with number of global brokers downgrading their view on Indian equities to Neutral. Now Goldman and CLSA have also joined the ranks. The October US inflation at 6.32% also raises concerns that the US may look to front-end rate hikes. Most likely, FPIs are parking in debt awaiting a correction in equiites.