FPI Exodus Hits Financial Services Hard: ₹12,204 Crore Sell-Off – In the first half of January, FPIs intensified their sell-off in the Financial Services sector, accounting for nearly one-third of their total outflows, with ₹12,204 crore offloaded. Other sectors facing significant sell-offs included Consumer Services, Power, Capital Goods, Metals & Mining, Information Technology, Automobile & Auto Components and Construction.
Selective Buying: Focus on Textiles, Media, Chemicals – Amid a significant sell-off in the first half of January, FPIs made modest investments in select sectors, including Textiles, Media and Chemicals.
The US Factor: High Yields and a Strong Dollar– The driving force behind this exodus remains the attractive US bond yields, which have crossed 4.55%, offering safer and higher returns compared to emerging markets. Coupled with a robust dollar index staying above 108, the preference for US assets has further intensified the sell-off.
DIIs Keep Markets Afloat: ₹43,866 Crore Buying in January’s First Half – DIIs purchased stocks worth ₹43,866 crore during this period, bringing their total investments for the financial year to an impressive ₹4,61,976 crore, offering much-needed support to the markets. Domestic Institutional Investors (DIIs) sustained their buying streak in the first half of January, counterbalancing the heavy sell-off by FPIs.
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