Foreign investors have been net sellers in the current month till date after two successive months of buying.
As Indian stock markets fell owing to concerns over a likely US recession, foreign portfolio investors (FPIs) offloaded shares worth over ₹10,000 crore on August 5. This marks the highest single-day selling since June 4 when the election results were announced, as per provisional data from NSE.
Stock market crash on August 5: Stock prices displayed on a digital screen at the facade of the Bombay Stock Exchange building, in Mumbai.
What data showed on FPIs?
FPIs were net sellers at ₹10,074 crore on August 5, data showed. Foreign investors have been net sellers in the current month till date after two successive months of buying. FPIs had sold shares worth ₹12,436.22 crore on June 4.
What about DIIs?
Contrary to FPIs, their domestic counterparts have been buying shares owing strong flows from mutual funds and retail investors. On Monday, domestic institutional investors (DIIs) net bought shares worth ₹9,156 crore. Owing to this, the gap between the ownership of DIIs and FPIs have shrunk to record levels, hitting a historic low in the June quarter.
Why Indian stock market fell on August 5?
Indian stock market fell on Monday after the Bank of Japan raised interest rates and US reported rising unemployment figures which raised fears of a global economic slowdown and US recession.
The higher rates in Japan led global investors to sell assets bought with yen loans and came at a time of increasing geopolitical tensions in the Middle East as Iran, Hamas, and Hezbollah have threatened retaliation against Israel after the assassination of a Hamas leader and a Hezbollah military commander.
News/Business/ Foreign investors sell shares worth over ₹10,000 crore- highest since June 4
