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Foreign Portfolio Investors (FPIs) sell off ₹5,254 crore in Indian equities due to high US bond yields, shift to net sellers in debt markets

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FPIs offload ₹5,254 crore in Indian equities on high US bond yields, turn net sellers in debt markets

Foreign portfolio investors (FPIs) have turned into net sellers in the Indian markets, offloading ₹5,254 crore worth of equities and totaling outflows at ₹8,982 crore as of April 19, according to National Securities Depository Ltd (NSDL) data. The total debt outflows for the month stand at ₹6,174 crore. This shift follows a period of solid inflows in the previous fiscal year.

The trend of FPIs reducing their buying momentum began with the start of the new fiscal year 2024-25, raising concerns among experts about continued inflows in the near term. Factors such as the India-Mauritius tax treaty and weak global cues are contributing to the uncertainty surrounding FPI investments in the Indian market.

While FPIs had shown strong inflows in the past fiscal year, the current scenario points towards a different trend as they become net sellers of Indian equities and debt. The significant outflows highlight a cautious approach by foreign investors, possibly influenced by economic fluctuations and regulatory changes in the global and domestic markets.

With the Indian market facing fluctuating investor sentiments, it remains to be seen how FPI activities will evolve in the coming months. The impact of external factors, along with domestic policy decisions, will play a crucial role in determining the future direction of foreign investments in India’s financial markets.

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