Continuous Selling by FPIs and FIIs in Indian Markets Amid Uncertainties: Business News

Indian markets have been experiencing a significant amount of selling by Foreign Portfolio Investors (FPIs) and Foreign Institutional Investors (FIIs) in the month of May, with a total of Rs 17,082 crores and Rs 24,975 crores respectively. This trend has been attributed to uncertainties surrounding the ongoing elections in India, as well as India’s underperformance compared to other markets.

The data indicates that High Net-worth Individuals (HNIs) and retail investors are opting to cash in profits and adopt a cautious stance amidst the market volatility. Market experts suggest that FIIs are not only selling due to election concerns but also because India is underperforming compared to markets like China and Hong Kong.

While the Nifty has declined by 2.06 per cent, the Shanghai Composite and Hang Seng indices have shown remarkable growth, with gains of 3.96 per cent and 10.93 per cent respectively. This contrast in performance has led to a strategic shift in FPI investment, favoring selling in India and buying in China.

The ongoing trend of ‘Sell India, Buy China’ is expected to continue putting downward pressure on Indian markets. However, experts believe that a significant turnaround could occur if the election results align favorably with market expectations, leading to aggressive buying from DIIs, retail investors, and HNIs.

Overall, the market is poised for potential volatility in the coming days, with the outcome of the elections playing a crucial role in determining the direction of the Indian markets. Stay tuned for more updates on this developing story.