Rs 2 lakh crore gone from D-Street! FII selloff hits new record high in 2022

Marking the biggest annual outflow, foreign investors have sold Indian stocks worth over Rs 2 lakh crore in calendar year 2022 so far.

FPIs have been selling Indian equities relentlessly since the last nine months. Last month alone, equities worth Rs 45,276 crore were sold. Till June 17, FPIs sold stocks worth Rs 28,445 crore.

So far in the calendar year, FPIs have sold Indian equities to the tune of Rs 2,02,244 crore, market data shows.

Dr. VK Vijayakumar, Chief Investment Strategist at

, says FPIs have been selling heavily in other emerging markets like Taiwan, and South Korea too.

“The strengthening of the dollar and rising bond yields in the US are the major triggers for FPI selling. Since the Fed and other central banks like the Bank of England and the Swiss central bank have raised rates, there are synchronised rate hikes globally, with rising yields. Money is moving from equity to bonds. In India, FPIs continued to sell in financials and IT where their holding is the largest,” he said.

Domestic flows have, however, been robust and have absorbed some of the outflow.

Well-known investor Mark Mobius, known as the “Godfather of Emerging Markets”, remains bullish on India. “India is in a very very good spot now because the Indian macro environment is pretty favourable for the long-term perspective. I would characterise India as being in its take-off state because we are now at a stage where incomes are rising. The economic growth is very good and the impact of technology is having a very important impact on the Indian economy,” he told ET Now.

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