Foreign investors pulled out a net amount of Rs 15,236 crore this month so far on attractive Chinese markets and concerns about the US economy entering a recession.

However, foreign portfolio investors (FPIs) have turned buyers in the last four trading sessions.

The outflow in the month of January came following a net inflow of Rs 11,119 crore in December and Rs 36,239 crore in November.

Overall, FPIs pulled out Rs 1.21 lakh crore from the Indian equity markets in 2022 on aggressive rate hikes by the central banks globally, particularly the US Federal Reserve, volatile crude, rising commodity prices along with Russia and Ukraine conflict.

The year 2022 was the worst year for FPIs in terms of flow and withdrawal from equities comes following a net investment in the preceding three years.

According to the data with the depositories, FPIs have made a net withdrawal of Rs 15,236 crore this month (till January 20). The latest FPI sell-off was largely driven by the aggressive reopening of the Chinese markets after the lockdown.

In accordance with its zero Covid policy, China had been enforcing rigorous lockdowns to reduce the number of Covid cases. As a result, Chinese markets fell, making them more appealing from a value standpoint, Himanshu Srivastava, Associate Director – Manager Research, Morningstar India, said.

This caused FPIs to shift their focus from economies with relatively high valuations, like India, to China, he added.

Meanwhile, four of the 10 most valued firms together added Rs 82,480.67 crore in market valuation last week, with HDFC Bank and Adani Total Gas emerging as the top gainers.

While Infosys and HDFC were the other gainers, Reliance Industries, Tata Consultancy Services (TCS), ICICI Bank, Hindustan Unilever, State Bank of India and Life Insurance Corporation of India (LIC) faced erosion from their market valuation.

Last week, the 30-share BSE benchmark Sensex climbed 360.59 points or 0.59 per cent.