Fii investment in india 2022

Indian companies are experiencing similar sadness because Since October 2021, FIIs are constantly selling Indian shares. If anyone asks, In fact, from October 2021 to March 2022, FIIs have sold around ₹2 tn. This sale is significatly higher than the sale of ₹528.9 bn in 2008 – the year of global financial crisis. The FIIs selling in the first 5 months of 2022 is higher than total FII buying in 2021. This has taken FII investment in India to the lowest for the entire decade. But what changed suddenly? Why are FIIs selling Indian shares big time? Why are FIIs Selling Indian Shares? #1 Global liquidity tightening During the pandemic, the Reserve Bank of India (RBI) took several measures to address the liquidity constraints like a decrease in interest rates and an increase in the repayment period. RBI went out on a limb. It took conventional and unconventional measures to ensure liquidity in money during stressful times. However, with the Covid-19 situation finally relaxing, RBI is also reversing its measures to ensure liquidity. Like RBI, the central banks of America and England also have been taking measures to control the liquidity. Hence, global liquidity is tightening because A rise in interest rates will lead to a reduction in risk-free returns. Risk-free returns will reduce because as interest rates rise, new bonds offer a higher rate of return. Also, the price of existing bonds will fall because they have to remain competitive with new – higher interest rate bonds. Let...

IT stocks, which have been under pressure on demand slowdown and margin impact related worries, were also on the buy list of FIIs as they invested Rs 397 crore in August against sell-off of Rs 4,665 crore in July. "IT witnessed buying, breaking an 11-month selling streak. In the last 6 months and 1 year, this sector had faced second highest outflows after financials," said a report by IIFL Alternative Research. Sector allocation trend shows that At 5.5 per cent, FII allocation in power is highest since January 2018 as they have been increasing the allocation in the sector in the last one year. FIIs have also raised bets on auto stocks as their allocation in the segment is at its highest (5.6 per cent) since March 2019. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times) Don’t miss out on ET Prime stories! Get your daily dose of business updates on WhatsApp. • 3,577.75 11:06 AM | 15 Jun 2023 91.80 (2.63%) 2,507.00 11:06 AM | 15 Jun 2023 49.85 (2.03%) 5,109.00 11:06 AM | 15 Jun 2023 100.00 (2.00%) 4,792.05 11:06 AM | 15 Jun 2023 93.05 (1.98%) • 1,295.85 11:06 AM | 15 Jun 2023 -27.40 (-2.07%) 578.00 11:06 AM | 15 Jun 2023 -7.05 (-1.21%) 391.90 11:06 AM | 15 Jun 2023 -4.55 (-1.15%) 1,285.45 11:06 AM | 15 Jun 2023 -14.95 (-1.15%)

The Indian share market outperformed most other markets last year, benefitting from better management of macros including inflation, and corporate earnings that did not disappoint despite challenging times. India got a larger than proportionate share of FPI funds directed towards emerging markets. Benchmark indices BSE Sensex and NSE Nifty 50 managed to end more than 3% higher, even though Indian equities saw the worst sell-off ever from foreign institutional investors (FIIs) in 2022. FIIs sold Indian stocks worth Rs 2.78 lakh crore in 2022. Meanwhile, DIIs remained net buyers last year, purchasing equities worth Rs 2.76 lakh crore. The strong DII buying was buoyed by continued inflows in MFs, even as the pace of monthly inflows slowed. This is the first time in four years that FII flows have turned negative. Since the beginning of the year 2022, FIIs continuously remained net sellers, according to NSDL data. The trend saw a reversal in July and August, but they reverted to being net sellers in September, October, and December. Despite the rout, FPI flows towards India and other EMs continued to be relatively stable even after the hawkish stance which indicates market expectations of peak interest rates in CY23. FII Activity in 2022 DII Activity in 2022 “Concerns over Covid in China are negative, and the strong economic data from the US indicates continuation of the Fed’s hawkish stance, which is pushing bond yields up and equities down. In the first half of December, FPIs...

Synopsis “Almost $11-$14 billion selloff that has come from FPI investors got absorbed by the domestic investors and that being the case, FIIs will reverse. FIIs are more opportunistic. Whenever they see fundamentals of the economy undergoing a change, they will jump the gun and start putting money. Though the biggest trigger will come from domestic investors, FII flows will be a big surprise for me in the year 2022.” “If one has invested in a single or maybe two-three stocks, if one or two stocks go down very sharply, the realisation of the kind of impact it will have on portfolio would have come to all the first-time investors – be it HNIs or millennials or any youngster who has put money in the market. This is the time investors will also start realising the importance of coming to the mutual funds, SIPs and why asset allocation is important,” says A Balasubramanian, MD & CEO, Now is the testing time. One may look back and say the Indian retail investor has exhibited a deep understanding of equities but for the first time they have felt the heat. Now when markets come back, will they be tempted to lock down? Will they be tempted to sell out as has happened in the past or will it be different this time? Volatility has definitely made people understand their vulnerability. In the last two years, a lot of new investors have come. Millennials have tested their luck in the domestic If one has invested in a single or maybe two-three stocks, if one or two stocks go down very s...

In the calendar year 2022, FIIs have been net buyers of Indian equities in 4 months of July, August, November and December. The total FII outflow has been worth around Rs 1.2 lakh crore amid quantitative tightening and rate hikes by the US Fed. Accelerating the outflow was the sharp depreciation in the value of Indian rupee against the US dollar. The domestic currency has so far lost over 11% of its value against the greenback. Among major sectoral indices, Nifty FMCG is the only one that has survived the sell-off in the last one month. Given that India’s consumption story remains bright, most analysts are bullish on the sector and do expect 2023 to bode well against the backdrop of a recovery in rural consumption, cooling off inflation, and strong domestic growth. Kotak Institutional Equities prefers consumer staples stocks over high-end discretionary stocks based on the view of a faster recovery in incomes of low-income households. “We would expect consumer staples stocks to hold up better in the case of any meaningful market correction,” the brokerage said in its 2023 outlook report. Dalal Street’s old favourite IT is hardly finding any takers. The sector is already the worst performing in 2022 and investors fear more downside ahead. “We expect two themes to play out in CY23 viz. credit growth and capex and thus sectors like BFSI, capital goods, infrastructure, cement, housing, defence, railways could be in focus,” domestic brokerage (With data inputs from Ritesh Pressw...

Financial Year INR crores Equity Debt Debt-VRR Hybrid Total -1 1411.95 4922.67 195.32 5720.23 12250.17 1998-1999 29973.20 -147.40 0.00 0.00 29825.80 1999-2000 9669.50 452.60 0.00 0.00 10122.10 2000-2001 10206.70 -273.30 0.00 0.00 9933.40 2001-2002 8072.20 690.40 0.00 0.00 8762.60 2002-2003 2527.00 162.00 0.00 0.00 2689.00 2003-2004 39959.70 5805.00 0.00 0.00 45764.70 2004-2005 44122.70 1758.60 0.00 0.00 45881.30 2005-2006 48800.50 -7333.80 0.00 0.00 41466.70 2006-2007 25235.70 5604.70 0.00 0.00 30840.40 2007-2008 53403.80 12775.30 0.00 0.00 66179.10 2008-2009 -47706.20 1895.20 0.00 0.00 -45811.00 2009-2010 110220.60 32437.70 0.00 0.00 142658.30 2010-2011 110121.10 36317.00 0.00 0.00 146438.10 2011-2012 43737.60 49987.90 0.00 0.00 93725.50 2012-2013 140032.60 28334.40 0.00 0.00 168367.00 2013-2014 79708.68 -28059.89 0.00 0.00 51648.79 2014-2015 111332.59 166127.09 0.00 0.00 277459.68 2015-2016 -14171.57 -4003.76 0.00 0.00 -18175.33 2016-2017 55702.67 -7291.64 0.00 0.00 48411.03 2017-2018 25634.19 119035.74 0.00 10.29 144680.22 2018-2019 -87.73 -42355.97 0.00 3514.24 -38929.46 2019-2020 6152.26 -48710.23 7331.17 7697.63 -27529.17 2020-2021 274031.96 -50443.62 33264.56 10247.09 267099.99 2021-2022 -140009.60 1628.53 12642.83 3498.41 -122239.83 2022-2023 -37631.57 -8937.74 5814.04 -181.71 -40936.98 2023-2024 68592.67 5053.33 3671.32 -100.92 77216.40 Total 1059043.20 275430.81 62919.24 30405.26 1427798.51 **15-Jun-2023

In the last few months, the news of ‘FIIs trimming their exposure to equities in India’ or ‘DIIs coming to the rescue while FIIs exited’ might be hitting your ears. Do you wonder who these FIIs and DIIs are and how they have considerable control over the market? Explore this article to understand it. This article spotlights the meaning of institutional investors, the meaning of FIIs and DIIs in the stock market, FII and DII investment in the Who Are Institutional Investors? Institutional investors are those entities that pool money from numerous investors and other entities and then invest them across various financial securities. Institutional investors include • Mutual funds • Insurance companies • Hedge funds • Pension funds • Investment trusts • Asset Management Companies, etc. Institutional investors can be either Foreign Institutional Investors (FIIs) or Domestic Institutional Investors (DIIs). What Are Foreign Institutional Investors (FIIs) In The Stock Market? Foreign Institutional Investors (FIIs) are those entities that pool money from numerous sources and invest it in another country’s financial markets. For instance, when American hedge funds invest in the Indian stock market, they are FIIs for the Indian stock market. FIIs can earn or lose a big chunk from currency fluctuations. Restrictions For FIIs To Invest In Equity Of Indian Companies • FIIs are allowed to invest up to • The maximum limit for investment in Indian companies for FIIs is 24% of the paid-up c...

FIIs Sell Nearly 80% Of Their Equity Holdings Of What They Invested In 2020-21. Here Is Why The first time the FPIs sold shares in the Indian markets was in fiscal year 2008-09 when global financial crisis gripped the world economy in the aftermath of the subprime mortgage crisis in the US • • • • • Foreign institutional investors (FIIs) have sold shares worth Rs 2,14,217 crore in Indian markets. Shutterstock Foreign institutional investors (FIIs) have sold shares worth Rs 2,14,217 crore in Indian markets since the start of financial year 2021-22 till June 10, 2022, data from National Securities Depository Limited (NSDL) showed. The magnitude of sell-off by foreign investors has been huge as they have sold 78 per cent of their equity holdings of what they had invested in financial year 2020-21, according to analysis of NSDL data. The sell-off in Indian markets came after the FIIs purchased shares worth Rs 2,74,032 crore in financial year 2020-21 when the pandemic struck the Indian markets and the Nifty 50 index fell sharply to 7,500 levels making valuations attractive for markets. Foreign portfolio investors' (FPI) net investment in Indian equities currently stands at 8,24,100 crore. According to analysis of the investment pattern of the last 30 financial years by FPIs, the current financial year is the fourth fiscal where they have sold shares in the Indian equity markets. The first time the FPIs were net sellers in the Indian markets was in fiscal year 2008-09 when globa...