FPIs Pull Out Nearly 59K Cr in September

Published on: October 14, 2024 - Foreign portfolio investors (FPIs) have been on a selling spree, offloading Indian equities worth a whopping $7 billion, or nearly Rs 59,000 crore, in October so far! This mass exodus comes as tensions flare between Israel and Iran, crude oil prices surge, and the Chinese market shows strong gains. Interestingly, this outflow follows a major inflow of Rs 57,700 crore in September, marking a sharp reversal in just a month. FPIs have also sold Indian bonds, but net bond sales have been relatively modest at Rs 709 crore, thanks to purchases of government bonds. What's driving this? It's part of a rebalancing act. China announced a big economic stimulus package in late September, which caught the attention of global investors. Investment firms like CLSA have reacted by slashing India's overweight exposure from 20% to 10%, while Jefferies has trimmed India's weightage by 1% and bumped up China's by 2%. The shift reflects a growing preference for the Chinese market as it gets a boost from stimulus measures, putting pressure on Indian equities.