InvestorQ : Why did FPIs turn net sellers in the month of April 2021?
Anamika Sodhani made post

Why did FPIs turn net sellers in the month of April 2021?

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Angel dcosta answered.
6 days ago
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For the month of April 2021, the FPIs were net sellers after being buyers in equities for 6 successive months. The total pull out from equities was to the tune of Rs.12,039 crore, although they ended up being buyers in debt and the domestic investors like the mutual fund and the insurance companies remained steadfast buyers into equity. The reason for the selling was that FPIs were spooked by intensity of the COVID resurgence.

In addition, the delays in implementing the vaccination program have also not helped. The last new outflows from equities by FPIs was seen in the month of Sep-20, when they pulled out Rs.7,782 crore from equities. FPIs infused $37 billion in FY21, of which $27 billion was infused purely Oct-20 and Mar-21. Steep commodity prices also impacted FPI sentiments.

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