Foreign portfolio investors (FPIs) have offloaded equities worth $2.53 billion in the Indian markets in 2016 so far. FPIs have been sellers since the start of the year pulling out money from most emerging markets.
India, which has seen the second highest outflows by foreign funds after South Korea, accounts for 40% of the total FPI outflows from the Asian markets. South Korea saw a withdrawal of $2.81 billion by foreign funds in this calendar year.
Domestic investors have brought equities worth Rs 19,564 crore in 2016. FPIs sold nearly $1.7 billion worth equities in January alone.
According to a report by ICICI Securities, FPIs sold across the board and did not chase any particular factor as risk, valuation, profitability, free cash flow, leverage or dividend yield. The report also said that, ‘FPIs have trimmed their holding in 30 Nifty stocks and over the last two to three quarters, they have been trimming their exposure to 11 specific Nifty stocks mostly form IT, financials and utilities sectors’.
The Indian rupee was flat at 68.46 against the US dollar on Thursday. The rupee has fallen more than 3% in the year so far.
In 2015, foreign investors brought in funds slightly over $3.27 billion which was however the lowest in four years.