FPIs outflow recorded at Rs 13,000 crore from stocks in India

FPIs: foreign portfolio investors (FPIs) have decided to offlo domestic equities worth Rs 13,000 crore in first three weeks of 2024 due to high valuations of stocks in India and surging US bond yields.

In contrast, foreign investors are still bullish on debt market and have infused Rs 15,647 crore in debt market during same period,according to media reports. 

Reportedly, foreign portfolio investors me a net investment of Rs 13,047 crore in country's equities till January 19, 2024. 

y pulled out over Rs 24,000 crore from equities between January 17 - January 19. Earlier, FPIs me a net investment of Rs 66,134 crore in December and Rs 9,000 crore in November last year.

"re are two main reasons why FPIs turned sellers. One, US bond yield started rising with 10-year yield rising from recent level of 3.9 per cent to 4.15 per cent triggering capital outflows from emerging markets," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, citing media reports. 

"Second, since valuations in India are high, FPIs used excuse of less-than-expected results from HDFC Bank to press massive sales too," he said. 

extensive selling by FPIs could be credited to offloing ir stake in HDFC Bank after its lower than expected quarterly results, Himanshu Srivastava, Associate Director for Manager Research at Morningstar Investment Research India said, citing media reports.

FPIs started new year with a cautious approach opting to book profits in Indian equity markets as key stock indices touched all-time high levels, he said.

FPIs also stood as big sellers in rest of emerging markets like South Korea and Hong Kong.

foreign investors have also been buying IT stocks this month after management commentary following Q3 results of IT managers brought optimism of demand revival in sector.

Overall, total FPI flows for 2023 stood at Rs 1.71 lakh crore in equities and Rs 68,663 crore in debt markets. Toger, y injected Rs 2.4 lakh crore in capital market.