Rs 4 lakh crore gone in 15 months! 3 factors why FIIs are reluctant to buy Indian stocks

NEW DELHI: In spite of the Sensex rallying around 1,400 points last week as domestic investors enjoyed bottom-fishing in troubled waters, foreign investors remain elusive on Dalal Street. Sebis cash market data shows that FPIs have sold stocks worth over Rs 4.1 lakh crore in the primary market.

FPIs have sold Rs 4.1 lakh crore over the last 15 months in the CM (cash market) segment in primary markets. This time, the pace and amount is much higher than what it was in 2008, which is hurting the Indian market. Since the real tightening cycle is coming back after decades of a low interest rate era, global investors seem to be considering a new asset allocation strategy, Jisang Yoo, CEO, Mirae Asset Capital Markets, told ETMarkets.

On the other hand, domestic investors have bought stocks worth about Rs 3.3 lakh crore in the last 15 months and have absorbed more than 80 per cent of foreigners selling so far. The average monthly SIP flow is Rs 12,100 crore this quarter. 5 years ago, this average monthly flow was only Rs 3,700 crore.