Even as the Sensex has lost 2.6% in the previous three sessions, foreign portfolio investors (FPIs) have been net sellers of just $2 million worth of stocks.
Global risk aversion, slipping oil prices and the slowdown in the Chinese economy, say experts, continue to be major drivers for selling by overseas funds from Emerging and Asian markets. In January alone, FPIs sold nearly $1.7 billion worth equities from the Indian market.
According to Andrew Holland, CEO of Ambit Investment Advisors, this FPI sell-off is due to risk aversion by foreign investors. “Global fears are the biggest reason behind FPI selling in recent past. Foreign funds have offloaded their exposure across the Emerging Markets over concerns about China and falling crude oil prices,” Holland said.