When will they return to India?
FII selling has been the big story since August. After selling nearly Rs.50,000 crore worth of equities in the last 7 months of 2015, the New Year has begun on a discouraging note. In the month of January 2016, FIIs have sold equities worth over $2 billion in the first 16 days of trading. What is more, they have been heavy sellers on 15 out of these 16 days, which clearly shows which way the FIIs are trending. During the same period, the DFIS have been buyers to the tune of nearly $2 billion but their impact has been limited due to the absence of currency effect in case of the domestic institutions. What is the outlook for FIIs in 2016? Continue reading