Foreign portfolio investors (FPIs) were net sellers to the tune of Rs 7,013 crore so far this month in the Indian markets on profit-booking as jitters in global bond markets spooked investors. As per depositories data, FPIs pulled out Rs 531 crore from equities and Rs 6,482 crore from the debt segment between Mar 1-13.
The total net outflow stood at Rs 7,013 crore.
In contrast, they had pumped in Rs 23,663 crore in Indian markets in February and Rs 14,649 crore in January, on net basis.
"The flows into the equity markets have moderated significantly in the recent times, which could be largely attributed to profit booking as markets continue to be at elevated levels," said Himanshu Srivastava, associate director – manager research, Morningstar India.
The dollar index climbing above 92 and firmness in US 10-year bond yield impacted sentiments which may be seen as profit-booking since FPIs are sitting on huge profits, VK Vijayakumar, chief investment strategist at Geojit Financial Services, added.
"FPIs have been big buyers in IT and financials where earnings visibility is high," he further said.
Besides, for debt segment, Srivastava said FPIs have been on a selling spree in the segment for a long time now mainly on concerns around COVID-19, calibrated support by RBI and low interest rates. FPI flows across emerging markets remains mixed, said Rusmik Oza, executive vice president, head of fundamental research at Kotak Securities.
Few of the emerging markets like S Korea, Thailand and Malaysia have seen marginal inflows this month, he said.
As per Oza, the near term FPI flows could be a function of how the US bond yields and dollar index behaves. "FPI ownership of blue-chip stocks, and especially Nifty 50 stocks is at a 5-year high which is indicative of how they expect the economy to do in the near future," noted Harsh Jain, co-founder and COO at Groww.
Eight of the top-10 most valued firms together added Rs 72,442.88 crore in market valuation last week, with Infosys emerging as the biggest gainer.
Reliance Industries Limited and State Bank of India were the only two companies from the top-10 list that witnessed erosion from their market capitalisation for the week ended Friday.
Among gainers, the valuation of Infosys jumped Rs 24,962.94 crore to Rs 5,85,564.20 crore, the most among the top-10 most valued companies.
The market valuation of Tata Consultancy Services (TCS) zoomed Rs 18,458.26 crore to reach Rs 11,30,763.01 crore.