Amid coverage price hikes, FPIs stay web sellers in equities in May to this point

In a month that noticed the Reserve Bank of India and the United States Federal Reserve raised rates of interest, international traders pulled over Rs 6,400 crore from home fairness markets within the first 4 buying and selling periods of May.

Foreign portfolio traders (FPIs) remained web sellers for the seventh straight month until April, as they withdrew greater than Rs 1.65 lakh crore from equities.

This was primarily on account of the anticipation of a price hike by the US Fed and the deteriorating geopolitical setting following Russia’s invasion of Ukraine.

After six months of promoting spree, FPIs turned web traders within the first week of April amid correction within the markets and invested Rs 7,707 crore in equities. However, after a brief break, they once more turned web sellers in the course of the holiday-shortened April 11-13 week, and the sell-off continued within the succeeding weeks too.

In May until date, FPI flows proceed to stay unfavorable as they bought practically Rs 6,417 crore throughout May 2-6, knowledge launched by depositories confirmed. The buying and selling in market was closed on May 3 on account of Eid.

WITH PTI