FPIs Sell Equities Worth Over $1.9 bn
Foreign portfolio investors (FPIs) have withdrawn close to $2 billion worth of stocks from India in 2016 so far. Foreign investors have turned risk averse with the increasing fears of a global slowdown, concerns over China’s slowing economy, according to experts. “FPI selling has been unabated from the start of the year and on the same hand DIIs have also turned alert. There is clearly a lack of buying in the last few months, people are reluctant to pour in additional money”, said Rikesh Parikh, vice president, institution corporate broking, Motilal Oswal Financial Services. In its recent report on FPI outflows, ICICI Securities stated, FPI’s have chased quality stocks in the past, the current sell-off provides long term investment opportunities in quality stocks which have seen FPI selling. However, the risk aversion mind set of retail investors could hinder the pace of robust DII flows.