Foreign portfolio investors (FPIs) have sold equities worth $1.4 billion between November 9 and 17, post Donald Trump’s victory in the US Presidential elections bringing down foreign inflows to $ 5.6 billion in 2016 so far, data obtained from Bloomberg shows.
Last month, FPIs offloaded equities worth $745 million after being net buyers for seven consecutive months, reports fe Bureau in Mumbai. Foreign investors had sold equities worth $ 1.7 billion and $ 1.1 billion January and February respectively.
According to the latest fund manager survey conducted by Bank of America Merrill Lynch, allocation to emerging markets have fallen to 4% from previous month’s 31%, highest fall since February 2011. In March this year, foreign investors bought equities worth $ 4.08 billion, the highest inflows this year.
India is the third best destination for foreign inflows after Taiwan and South Korea which attracted funds worth $ 10.9 billion and $ 8.1 billion, respectively in 2016 so far. Thailand ranks fourth with foreign inflows of $ 2.5 billion followed by Indonesia which received foreign investment worth $ 1.9 billion.