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Key Points

Foreign Portfolio Investors (FPIs) have stayed as net sellers in Indian stock markets for the second consecutive month in May 2023. In May alone, they sold stocks worth Rs 19,860 crore, following a selling spree observed throughout January, February, and March. Despite their sell-off, the Sensex recently rebounded, aided by domestic inflation numbers and persistent volatility in global markets, especially concerning potential US tariffs. The broader Indian equity indices, Sensex, and Nifty, have meanwhile demonstrated growth through previous years, indicating a resilient market.

Key Points: Foreign Investors Remain Net Sellers in Indian Markets for May

  • FPIs net selling continues impacting Indian markets
  • Rs 19,860 crore worth stocks sold in May
  • Sensex rebounds despite volatility supporting indices
  • Inflation and US tariffs contribute to global market unease
1 min read

FPIs remains net sellers in Indian stock market for second month

FPIs continue to offload Indian stocks for the second month, impacting market dynamics.

"FPI buying has supported the indices of late. - National Securities Depository Limited"

New Delhi, June 1

Foreign portfolio investors (FPIs) have turned net sellers in Indian stock markets for the second straight month in May.

In January, February, and March, they have been net sellers all through.

Data made available by National Securities Depository Limited showed that FPIs had bought stocks worth Rs 19,860 crore in May. In April, the FPIs had accumulated stocks worth Rs 4,223 crore.

FPIs had fuelled the latest bull run in the stock market, after a sharp slump. As per definition, Foreign Portfolio Investment involves an investor buying foreign financial assets.

The benchmark Sensex is now about 4,500 points below its all-time high of 85,978 points. At one time, the Sensex had fallen about 13,000 points from its high. The FPI buying has supported the indices of late.

Indian stock markets outperformed global markets over the past few weeks, as volatility continued to reign in global markets over possible forthcoming US reciprocal tariffs.

A comfortable inflation number in India also somewhat supported the domestic equity indices.

In 2024, Sensex and Nifty accumulated a growth of about 9-10 per cent each. In 2023, Sensex and Nifty gained 16-17 per cent, on a cumulative basis. In 2022, they gained a mere 3 per cent each.

- ANI

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Reader Comments

R
Rajesh K.
This FPI volatility is concerning but expected given global uncertainties. Our markets have shown remarkable resilience though - outperforming global peers despite the selling pressure. Long-term investors shouldn't panic. 🇮🇳
P
Priya M.
FPIs come and go, but domestic investors are the real backbone of our markets now. The growth of SIP culture shows Indians are investing in India's growth story. Foreign money is welcome but not essential anymore!
A
Amit S.
The government needs to address why FPIs are net sellers for so long. Is it just global factors or are there policy concerns too? Our markets can't keep relying only on domestic money for growth.
S
Sunita R.
As a small investor, these FPI movements make me nervous 😅 But the article shows our fundamentals are strong - controlled inflation, steady growth. Maybe time to buy the dip? What do others think?
V
Vikram J.
FPIs will return when US Fed cuts rates. Till then, volatility is our new normal. The 9-10% growth in 2024 is still decent considering global conditions. Indian markets are maturing well.
N
Neha P.
The article misses discussing sector-wise FPI activity. Are they exiting specific sectors? That info would help retail investors make better decisions. Otherwise good analysis of the broader trends.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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