FPIs sell equities worth $698 million in October

India News

Foreign Portfolio Investors (FPIs) continued their selling spree in October after offloading equities worth $ 3.6 billion in the last two months. So far in October, FPIs have sold equities worth $ 698 million. On Friday foreign investors sold shares worth $ 261.62 million, provisional data on exchanges showed. FPIs sold Indian equities worth close to $1.6 billion in September, after offloading stocks worth nearly $2 billion in August.
Sensex at the present levels of 32,432.69 trades at a price-earnings multiple of over 18.40 times one-year estimated forward earnings. Brokerages have been expressing caution that the Indian market is overvalued. They have also flagged the downwards revisions to earnings estimates. Concerns over steep valuations have seen investors taking risk off the table. Earnings estimates for FY18 are being trimmed with almost every sector having seen a downgrade. Geopolitical tensions have also weighed on investor sentiment. Among the emerging markets (EMs), foreign investors bought shares worth $1.5 billion in South Korea and $786.0 million in Taiwan. Indonesia has witnessed outflows of $ 377.5 million.