InvestorQ : How was the FPI activity in the month of October 2021? I understand there was a lot of FPI selling?
Anu Biswas made post

How was the FPI activity in the month of October 2021? I understand there was a lot of FPI selling?

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Ria Jain answered.
1 month ago
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Foreign portfolio investors turned aggressive sellers in the month of Oct-21, especially in the last 10 trading sessions. This came after 2 consecutive months of buying into Indian equities by the FPIs. For the month of October 2021, FPIs pulled out a total of Rs.12,278 crore from Indian markets in debt and equity put together. FPIs withdrew Rs.13,550 crore from equities but infused Rs.1,272 crore into debt, which still shows confidence in rate differentials.

The FPI selling picked up momentum after some of the large global brokerages like Morgan Stanley, UBS and Nomura downgraded Indian equities to from overweight to equal-weight. They had cited steep valuations for the downgrade. However, one likely reason for the FPI selling could also be that the selling is to keep funds ready for the spate of IPOs worth Rs.30,000 crore that are expected in the next 2 weeks, including some big names.

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