FII sales at $2.62 billion, a one-year high

In January, FIIs brought home the largest amount of money in Asia from India

Mumbai: In January this year, foreign investors (FIIs) repatriated $2.62 billion from Indian stock markets, the largest outflows in Asia. After January 2023, January of the current year has once again seen the highest outflows.

In January, apart from Sensex, other Asian equities indices such as Hang Seng, Shanghai, Kopsi and Jakarta have seen a decline. But Nikkei and Topics Index have seen improvement.

Apart from India, there has been an outflow of 6 million dollars from the Sri Lankan market. But there have been inflows of 12.28 billion dollars in Japan, 2.23 billion dollars in South Korea and 1.72 billion dollars in Taiwan.

The figures show that other Asian countries receiving inflows include the Philippines, Thailand, Indonesia, Malaysia and Vietnam.

According to assessments, outflows from India have been seen due to weak earnings of Indian companies in the third quarter of the current financial year. Investors have become wary of not seeing earnings as per valuations.

Massive selling by FIIs in Indian companies has been seen after HDFC Bank results. Apart from this, foreign investors have been selling in the wake of indications that interest rates will not be cut in the US at present. US Treasury yields have risen again.

The Middle East crisis and its impact on global growth and inflation are witnessing volatility in the markets. Investors are also keeping an eye on the meeting of the US Federal Open Mart Committee which started on January 30.

An interest rate cut is unlikely at the meeting but the market will be watching to see what the Fed signals.

Analysts are optimistic about the Indian economy compared to other countries of the world and see financial stability and steady growth in the country.