FPIs have been net sellers in Indian shares, offloading Rs 14,232 crore from May’s start to the 8th, pushing year-to-date exchange sales to Rs 2,18,540 crore. Analysts attribute this to crude oil rallies and international unrest, signaling potential prolongation.
Contrasting this, primary market investments hit Rs 12,340 crore YTD. Geojit’s Dr. VK Vijayakumar reveals nuanced strategies: ‘Net selling masks buys in energy, building materials, and capex sectors. Mid and select small-caps with superior growth are priorities.’ Rupee slides and earnings worries exacerbate the trend, as AI hotspots in Asia draw funds.
Positive election vibes from strong central governance evaporated amid rising tensions and energy price chaos. Bajaj Broking’s Pabitro Mukherjee anticipates sustained selling: ‘High oil, weak currency, and geopolitics will dominate FPI behavior through 2024.’
Nifty’s 0.7% weekly rise last week, amid choppy sessions, marks back-to-back gains but underscores fragility. With FPIs retreating, opportunities may emerge in undervalued segments, though global shadows loom large over Dalal Street.
