FPIs net sellers in August

By: | Published: August 10, 2017 4:53 AM

Foreign Portfolio Investors (FPIs) have sold shares worth $42 million in August so far with the net investments standing at $8.94 billion so far this year, amidst concerns over steep valuations and tepid growth in earnings of the companies in the ongoing results season.

Foreign Portfolio Investors, fpi, fpi net sellers, market, market newsOverseas investors remained net sellers for the four out of the seven sessions in August. (Reuters)

Foreign Portfolio Investors (FPIs) have sold shares worth $42 million in August so far with the net investments standing at $8.94 billion so far this year, amidst concerns over steep valuations and tepid growth in earnings of the companies in the ongoing results season. The Sensex, at the current level of 31,797, trades at a price-earnings multiple of over 18.3 times one-year estimated forward earnings, a 20% premium to the long-term average multiple.

Overseas investors remained net sellers for the four out of the seven sessions in August. Market participants said that there is a state of exhaustion amongst investors about the Indian and the global market. And if the investor exhaustion accelerates, there could be a deeper correction in the market.

Andrew Holland, CEO at Avendus Capital Alternate Strategies, said a lot of foreign investors are wary of the market rise. “I think everyone is worried about the market,” Holland said.

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