Posted at 10:26 AM , on April 10, 2020
For the month of March 2020, FPIs sold Rs.124,000 crore in the Indian markets; in equity and debt combined. This is the largest monthly selling by FPIs since they were first allowed into India in the year 1992. What exactly triggered this aggressive selling by FPIs?
Lockdowns are a time for risk-off
A lockdown is never a great idea. But it can be a lot more troubling for an economy like India which largely gets foreign flows due to its growth promise. The lockdown means multiple things for a country like India. Firstly, it means that the GDP growth will slow down. Secondly, it also means that consumer power will be under stress. Thirdly, it implies that we could be in for a series of consumer loan defaults. That is not a great signal for FPIs to invest in India.
Posted at 6:15 PM , on October 12, 2015
What will drive markets from here on?
As the Nifty gets closer to the 8200 mark, the question is whether the rally has further legs from these levels? The answer can be quite tricky. Currently, there are quite a few key factors which need to be addressed before we can have a clear picture on where the markets are headed.
Posted at 7:30 PM , on September 7, 2015
August 2015 was the worst month since January 2008
The quantum of FPI selling that we saw in August 2015 was not merely an outflow. It was a virtual deluge. Net FPI selling was almost to the tune of Rs.19,700 crore in the month of August and was the worst month since January 2008. Over 92% of this selling happened in equities and only 8% in debt. The start has been quite bad in September with outflows to the tune of Rs.2,700 crore in the first 3 trading days. The question, is what could have spurred such a massive sell-off and what does it hold for the future of the market recovery?