After offloading $2 bn worth stocks in August, FPIs sell $1.11 bn in September

By: |
Published: September 23, 2017 3:34:46 AM

Foreign Portfolio Investors (FPIs) have sold Indian equities worth close to $1.11 billion in September, after offloading stocks worth nearly $2 billion in August.

FPI, Foreign Portfolio InvestorsForeign Portfolio Investors (FPIs) have sold Indian equities worth close to .11 billion in September, after offloading stocks worth nearly billion in August.(Representative Image: Reuters)

Foreign Portfolio Investors (FPIs) have sold Indian equities worth close to $1.11 billion in September, after offloading stocks worth nearly $2 billion in August. On Friday foreign investors sold shares worth $191.6 million, provisional data on exchanges showed. Sensex at the present levels of 31,922.44 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.Brokerages have been expressing caution that the Indian market is overvalued. They have also flagged the downwards revisions to earnings estimates.  Concerns over steep valuations and poor corporate earnings for the June quarter have seen investors take risk off the table. Earnings estimates for FY18 are being trimmed with almost every sector having seen a downgrade.

Net profits for the Nifty set of companies fell around 11% year-on-year in Q1FY18, disappointing the street. The tepid growth in GDP for the June quarter, of just 5.7% year-on-year, has seen economists cutting their growth forecasts for the year. Among the emerging markets (EMs), Taiwan has witnessed the highest outflows in September at $ 1.3 billion followed by India. FPI sales in Indonesia was at $ 660 million and $ 393 million in South Korea.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Next Stories
1Stock market slide wipes off investor wealth by Rs 2.68 lakh crore
2SBI Life Rs 8,400 IPO, biggest public offer post Coal India issue, subscribed 3.6 times at close
3PNB plans to raise up to Rs 5,000 crore from market