The wave of selling that started in the global markets at the end of last week has also engulfed the Indian market. On Friday, August 2, a big decline was recorded in the domestic market. Foreign portfolio investors, i.e. FPIs, also contributed to the fall of the domestic market, who have once again started selling after buying for about one and a half months.
Trend changed due to global selling
The buying by foreign portfolio investors (FPIs) in the Indian stock market was in top gear in the month of July. After buying for about one and a half months, their attitude now seems to have changed in the month of August. In the two days of trading so far this month, foreign portfolio investors have sold Indian shares worth more than Rs 1 thousand crore. The reason for this is the increasing pressure of decline in stock markets around the world.
So much selling in two days of August
According to the data of National Securities Depository Limited (NSDL), in the first two days of the month of August, foreign portfolio investors sold Indian shares worth a total of Rs 1,027 crore. Due to this, the total investment of FPI in Indian shares in 2024 has come down to Rs 34 thousand 539 crore so far.
There was a lot of buying in July
Earlier in the month of July, FPIs had made rapid purchases of Indian shares and the total figure had crossed Rs 30 thousand crore. According to the data of NSDL, in the month of July, Rs 32 thousand 365 crore was invested by foreign portfolio investors in Indian shares. Before that, in June, they had invested Rs 26,565 crore in Indian shares.
Selling was happening before June
FPIs in the Indian market returned to the path of buying from the month of June after a long sell-off. Before June, in the month of May, foreign portfolio investors sold Indian shares worth Rs 25,586 crore. At the same time, in the first month of the financial year i.e. April 2024, FPIs sold shares worth Rs 8,671 crore. If seen according to the calendar year, the year started with selling. In January, FPIs sold Indian shares worth Rs 25,744 crore. FPIs bought Indian shares worth Rs 1,539 crore in February 2024 and Rs 35,098 crore in March.
