NEW DELHI: Foreign investors were on a selling spree in January and offloaded Indian stocks worth over $3.52 billion (net) in the first month of the calendar year 2023. According to market experts, foreign portfolio investors (FPIs) now find Chinese and other emerging markets more lucrative than the ‘overvalued’ Indian market.
The intensity of selling by FPIs has intensified since Adani Group stocks crashed on the bourses following allegations of stock manipulation among other things by US-based short-seller Hindenburg Research. In the past two sessions, FPIs net sales in the domestic equity market stood at a little less than Rs 12,000 crore.
“Indian stocks came under selling pressure in January 2023 due to outflows from FPIs ($3.52 bn) triggered by muted corporate results, high valuations, Adani issue and diversion of monies to China,” Deepak Jasani, Head of Retail Research, HDFC Securities told this newspaper.
Jasani said foreign investors purchased a net $21 billion worth of Chinese shares via a trading link with Hong Kong in January, the highest monthly inflow since the cross-border link was launched in 2014 and surpassing total inflows in 2022.