FPIs resume selling spree in January, pull out nearly ₹12,000 crore from Indian equities. What’s in store ahead?
Live MintForeign portfolio investors resumed their selling streak in January after turning net buyers in December. This significant selling by FPIs has brought their share in Indian equities to 16.1% in December 2024, a 12-year low. Reports also suggest that the third quarter of FY25 will likely continue the earnings slowdown trend, raising concerns about downgrades and share target price cuts. Continued selling by FPIs expected Shriram Mutual Funds, in its latest report, anticipates that foreign portfolio investors will maintain a cautious approach toward Indian equities until there is clearer visibility regarding the recovery in Q3 FY25 earnings and fair market valuations. Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “With the dollar index at 109 and the 10-year bond yield at 4.67%, FIIs are likely to continue with their selling strategy, putting pressure on the market in the near term.” "With the Q3 results season starting today, there will be market reaction to results.