Foreign Portfolio Investors (FPIs) have continued to be net sellers so far in 2023. In just three days of February, the outflow of foreign investors is in the range of ₹5,753 crore shares. In January, the exodus reached about ₹28,852 crore. While the equity market is seeing selling pressure, REITs have risen for debt instruments. The stock market was jittery in the week ending Feb. 3 due to outflows of foreign funds and the plummeting shares of Adani Group after the Hindenburg allegations and the FPO pullout.
Foreign Portfolio Investors (FPIs) have continued to be net sellers so far in 2023. In just three days of February, the outflow of foreign investors is in the range of ₹5,753 crore shares. In January, the exodus reached about ₹28,852 crore. While the equity market is seeing selling pressure, REITs have risen for debt instruments. The stock market was jittery in the week ending Feb. 3 due to outflows of foreign funds and the plummeting shares of Adani Group after the Hindenburg allegations and the FPO pullout.
According to NSDL data, REITs sold ₹5,753 crore of Indian stocks between Feb 1-3. On the other hand, they are net buyers on the debt market with an influx of ₹5,502 crore in those three days.
According to NSDL data, REITs sold ₹5,753 crore of Indian stocks between Feb 1-3. On the other hand, they are net buyers on the debt market with an influx of ₹5,502 crore in those three days.
In January, REITs exited ₹28,852 crores of shares, as they invested ₹3,531 crores in debt.
In January, REITs exited ₹28,852 crores of shares, as they invested ₹3,531 crores in debt.
So far, year-to-date, REITs sold on the stock market are around ₹34,605 crore. As the debt market attracts an influx of ₹9,033 crore.
So far, year-to-date, REITs sold on the stock market are around ₹34,605 crore. As the debt market attracts an influx of ₹9,033 crore.
Dr.VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, “The massive sale of REITs in Indian markets has impacted market sentiment.
Dr.VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, “The massive sale of REITs in Indian markets has impacted market sentiment.
In the spot market, the Geojit strategist pointed out that REITs sold a mammoth ₹53,887 crore in January and followed that with ₹3,212 crore sales in February so far.
In the spot market, the Geojit strategist pointed out that REITs sold a mammoth ₹53,887 crore in January and followed that with ₹3,212 crore sales in February so far.
Additionally, with the exception of Budget Day (February 1), Foreign Institutional Investors (FIIs) have been net sellers throughout the past week on Indian equities.
Additionally, with the exception of Budget Day (February 1), Foreign Institutional Investors (FIIs) have been net sellers throughout the past week on Indian equities.
FII sold ₹6,792.80 crore on the stock market on January 30, followed by another sell-off of ₹5,439.64 crore on January 31. However, FIIs were net buyers on the day of the 2023 budget announcement when the influx arrived at ₹1,785.21 crore. But the sentiment turned bearish again on February 2 and 3 with an exit from ₹3,065.35 crores and ₹932.44 crores respectively.
FII sold ₹6,792.80 crore on the stock market on January 30, followed by another sell-off of ₹5,439.64 crore on January 31. However, FIIs were net buyers on the day of the 2023 budget announcement when the influx arrived at ₹1,785.21 crore. But the sentiment turned bearish again on February 2 and 3 with an exit from ₹3,065.35 crores and ₹932.44 crores respectively.
Between trading sessions from January 30 to February 3, FIIs sold a huge ₹14,445.02 crores of Indian stocks.
Between trading sessions from January 30 to February 3, FIIs sold a huge ₹14,445.02 crores of Indian stocks.
Further, Vijayakumar said, “REITs are selling in India and buying in cheaper markets like China, Hong Kong and South Korea where valuations are attractive. This “short in India and long in other cheaper markets” strategy resulted in a strong underperformance of the Indian market. , so far this year. While China, Hong Kong and South Korea are up 4.71%, 7.52% and 11.45% respectively since the start of the year, India is down 1.89% .”
Further, Vijayakumar said, “REITs are selling in India and buying in cheaper markets like China, Hong Kong and South Korea where valuations are attractive. This “short in India and long in other cheaper markets” strategy resulted in a strong underperformance of the Indian market. , so far this year. While China, Hong Kong and South Korea are up 4.71%, 7.52% and 11.45% respectively since the start of the year, India is down 1.89% .”
He added: “This type of underperformance is unlikely to last long. FIIs were also extremely short in the derivatives market. gains since the Adani The stock market crisis has impacted sentiment Banking stocks have been hurt by fears that Adani’s exposure will affect banks But RBI’s message that India’s banking system is healthy improved sentiment, leading to a late recovery in bank stocks.
He added: “This type of underperformance is unlikely to last long. FIIs were also extremely short in the derivatives market. gains since the Adani The stock market crisis has impacted sentiment Banking stocks have been hurt by fears that Adani’s exposure will affect banks But RBI’s message that India’s banking system is healthy improved sentiment, leading to a late recovery in bank stocks.
FIIs have sold ₹2,212.58 crores in shares so far in February. Last month, the outings were massive ₹41,464.73 crores.
FIIs have sold ₹2,212.58 crores in shares so far in February. Last month, the outings were massive ₹41,464.73 crore.
However, despite constant outflows of foreign funds, the stock market closed the week of January 30 to February 3 on a positive note.
However, despite constant outflows of foreign funds, the stock market closed the week of January 30 to February 3 on a positive note.
Last week, Sensex stayed in the green for the entire period and gained 1,511 points or 2.55%. On the other hand, Nifty 50 traded on a mixed note, but climbed 250 points or 1.42% in total during the week.
Last week, Sensex stayed in the green for the entire period and gained 1,511 points or 2.55%. On the other hand, Nifty 50 traded on a mixed note, but climbed 250 points or 1.42% in total during the week.
On Friday, Sensex closed at 60,841.88 up 909.64 points or 1.52%. Nifty 50 zoomed 243.65 points or 1.38% to end at 17,854.05.
On Friday, Sensex closed at 60,841.88 up 909.64 points or 1.52%. Nifty 50 zoomed 243.65 points or 1.38% to end at 17,854.05.
Disclaimer: The opinions and recommendations made above are those of individual analysts or brokerage firms, and not of Mint.
Disclaimer: The opinions and recommendations made above are those of individual analysts or brokerage firms, and not of Mint.
