Indian markets are holding up really well.
NSDL Data shows that FPIs have withdrawn 1.29 lakh crore in FY 21-22. This is the highest ever.
Despite this, Nifty 50 is down less than 14% from its peak.
The bulk of these outflows started in October 2021 and have been the worst in Jan and Feb 2022. Here are the numbers -
FPI Net Outflows -
October 2021 - 17033 crore
November 2021 - 5710 crore
December 2021 - 13150 crore
January 2022 - 35,975 crore
February 2022 - 37,689 crore
Two sectors have dominated these numbers with the greatest amount of absolute outflows. They are financial services (including banks) and IT. Both sectors have seen outflows in excess of Rs 40,000 crore each
While not comparable, one sector has seen disproportionate inflows from FPIs. This sector is Retail. The net inflows between October 2021 and Feb 2022 are just above Rs 15,000 crore.
Domestic mutual funds and domestic mutual fund investors have played a pivotal role in keeping the markets strong. They put in 98,624 crores between Oct 2021 and Feb 2022.
It looks like the FPIs will have to buy back at higher prices when they bring back these funds to India
By: via @AlliesFin Serve Stock Market
