InvestorQ : How big was the FII selling in the week ended Sep 25? Is it true that FIIs would have turned net sellers in September 2020?
Mary Joseph made post

How big was the FII selling in the week ended Sep 25? Is it true that FIIs would have turned net sellers in September 2020?

Answer
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diksha shah answered.
3 weeks ago


Let us look at the FII flows into equity in the last week and the flows during the full month separately to get a better perspective. Let us also look at flows into equity visi flows into debt to get a clearer picture of what the flows are doing.

Foreign portfolio investors or FPIs pulled out Rs.476 crore on a net basis from Indian markets in September 202. There was clearly some risk-off selling on the back of rising cases of Coronavirus in India and in Europe. The strong dollar also diverted money outside India.

If you look at the break up of flows, then in the trading sessions in September 2020, the FPIs withdrew Rs.4016 crore from equities. However, they also infused Rs.3540 crore into debt as RBI held on to rates and rupee stayed stable. This led to net inflows of Rs.476 crore.

Selling in equities was extremely evident in the last 5 trading sessions including on Friday when the Sensex actually recovered over 800 points. During the last one week, or the last 5 trading sessions, FIIs sold equities worth Rs.10,500 crore on a net basis.

If you look back at the last 3 months then FPIs infused net Rs.46,532 crore, Rs.3301 crore and Rs.24,053 crore in the months of August, July and June respectively. This opportunistic profit booking and the strong dollar could mean a negative close for flows in Sep-20.