InvestorQ : How was the FPI trades for the month of March 2022?
Arya Nanda made post

How was the FPI trades for the month of March 2022?

Anjana Aiyar answered.
10 months ago

Foreign portfolio investors or FPIs were consistent sellers in March, continuing the trend that started in October 2021, marking the sixth consecutive month of FPI selling. For March 2022, the net FPI selling was in excess of Rs.41,123 crore in the equity segment. FPIs were less active on the debt side. The aggressive selling in equities was on the back of risk-off sentiments in the market, which is normally unfavourable to EMs like India.

These risk-off sentiments were triggered by factors like the aggressive rate hikes by the Fed, volatile geopolitical environment, surging oil prices, rampant inflation etc. The March FPI selling comes on top of net FPI withdrawals of Rs.35,592 crore in Feb-22 and Rs.33,303 crore in Jan-22. For Fy22 overall, FPIs ended with record net selling of Rs.140,010 crore in equities. Ironically, FPIs were net buyers as of Sep-21 with the entire selling pressure coming in the second half of the FY22.