FPI's current aggressive sell-off in equities, even during the 2008 crisis

MUMBAI: Foreign Institutional Investors (FPIs) 's current sell-off in Indian equities during the financial crisis of 2008 is much higher than the current figure of Rs. Net sales have been on the rise while FPIs continued to be net sellers during the financial crisis of 2008-09 from November 2009 to November 2009. In 2008 alone, foreign investors sold more than Rs 1 lakh crore worth of equities.

In 2007, foreign investors sold more than Rs 1 lakh crore worth of equities

Withdrawing its investment in equities in emerging markets, FPIs are now investing in commodities, an analyst said. Global crude oil prices are currently hovering around સપાટી 70 a barrel.

Foreign investors continue to sell even in February and have so far sold Rs 15 crore.

FPIs are withdrawing their investments from emerging market equities following a signal from the US Federal Reserve to raise interest rates.

Retail investors, on the other hand, have been growing steadily as a result of the steady rise in equities. The share of retail investors in companies listed on the NSE rose to an all-time high in the December quarter with a growth rate of 7.5 per cent.

Market analysts say that it appears that FPIs are adopting a strategy in view of possible future developments. Central banks are raising interest rates as inflation rises in the developed world. All eyes are now on how much the US Federal Reserve will raise interest rates. It will have a profound and far-reaching impact on the emerging market.

Uncertainty in global markets is also being exacerbated by the sharp rise in crude oil and Russia-Ukraine tensions. This year, the price of crude oil has jumped 40 per cent to over 50 a barrel. Which is a negative factor for Indian industry.