Foreign investors pull out over 90,000k cr from Indian Markets in October

| Updated: 26 October, 2024 3:24 pm IST

NEW DELHI: Foreign Institutional Investors (FIIs) have continued their aggressive selling spree in Indian markets, withdrawing more than ₹1 lakh crore since the beginning of October 2024. Today’s figures reflect a net outflow of ₹3,037 crore from FIIs, contributing to a total monthly withdrawal of over ₹90,000 crore as of Oct 25. This marks a significant retreat from Indian equities amid a global environment of rising interest rates, geopolitical concerns, and mounting inflation pressures.

Here’s a look at daily FII selling in October

1st Oct: – ₹5,579 Cr

3rd Oct: – ₹15,243 Cr

4th Oct: – ₹9,897 Cr

7th Oct: – ₹8,293 Cr

8th Oct: – ₹5,730 Cr

9th Oct: – ₹4,562 Cr

10th Oct: – ₹4,927 Cr

11th Oct: – ₹4,162 Cr

14th Oct: – ₹3,732 Cr

15th Oct: – ₹1,748 Cr

16th Oct: – ₹3,435 Cr

17th Oct: – ₹7,421 Cr

18th Oct: – ₹5,486 Cr

21st Oct: – ₹2,262 Cr

22nd Oct: – ₹3,978 Cr

23rd Oct: – ₹5,685 Cr

24th Oct: – ₹5,062 Cr

25th Oct: – ₹3,037 Cr

The persistent selling pressure from FIIs has pushed the overall outflow to record-breaking monthly levels. This reflects concerns over the Indian equity market’s valuations and broader global risk-off sentiment, with investors favouring safer assets in the current economic climate.

In contrast to FIIs, Domestic Institutional Investors (DIIs) have been net buyers throughout the month, showing strong confidence in Indian markets despite the volatility. On October 25th, DIIs invested a net sum of ₹4,159 crore, continuing their trend of supporting the markets during these testing times.

The DIIs’ cumulative buying spree in October has helped cushion the sharp fall that could have occurred due to the aggressive FII sell-off. Their consistent buying suggests that domestic players believe in the long-term growth potential of the Indian economy despite the short-term challenges.

The intense selling by FIIs reflects a combination of factors, including Ongoing geopolitical tensions, particularly the Israel-Hamas conflict, which are driving risk aversion in global markets. Another factor is the surge in US Treasury yields has made emerging market assets, including Indian equities, less attractive to foreign investors. Concerns over a potential global slowdown and tightening monetary policies worldwide have added to the bearish sentiment in the markets.

Despite the FII outflows, Indian markets have shown resilience, with DIIs stepping in to provide stability. However, market analysts caution that continued volatility could persist, driven by macroeconomic uncertainties and the evolving global economic landscape.