New Delhi, August 19 (SocialNews.XYZ) After three months of sustained buying with cumulative investment of Rs 1,37,603 crore, FPIs turned sellers in August, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
The consolidated NSDL data shows the August FPI investment through 18th at Rs 8,993 crore. But this figure includes bulk deals and investment through the primary market. In the cash market FPIs sold stocks for Rs 10,921 crore and they were sellers in 10 days and buyers in only three days in August, so far, he added.
Strength in the dollar index at well above 103 and the US 10-year bond yield remaining around 4.25 per cent are short-term negatives for FPI flows to emerging markets like India, he said.
FPIs continue to be consistent buyers in capital goods and power and and, of late, they have started selling in financials.
FPI selling is countered by DII buying, but this is turning out to be inadequate to arrest the decline in the market, he added.
In view of the strong dollar and rising US bond yields, FPIs are likely to continue selling, in the near-term.
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Source: IANS
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