Foreign institutional investors (FIIs) net sold Indian shares worth more than Rs 35,000 crore ($4.6 billion) each month from November through April so far, according to provisional exchange data. As of Monday, net sales by FIIs stood at Rs 35,945.9 crore for the month so far.
Sustained selling of shares by FIIs has been a key dampener on Dalal Street since October, the month that saw the last of a chain of all-time highs in benchmark indices Sensex and Nifty.
Samir Arora, Founder and Fund Manager at Helios Capital, believes there is limited upside in the market now, citing sustained FII selling as one of the major factors. "Forget about what is the reason because we also don't know what the reason for them to sell is, but they are selling," he told CNBC-TV18.
He also cited interest rate hikes in the US, the Ukraine crisis, COVID-related supply chain issues is China, elevated levels of inflation and rural India being in a bad shape as key reasons behind his view.
A near one-sided rally in the Indian market - sending Sensex and Nifty breaking a series of records - driven by liquidity came to an end in October 2021.
As of Monday's closing levels, both benchmarks are around nine percent below their all-time highs, touched in October 2021.
Domestic institutional investors (DIIs), however, have been broadly net purchasers of shares on the Street, providing a cushion to the main indices.
| Date | Net sale/purchase | |
| FII | DII | |
| Apr 25 | -3,302.85 | 1,870.45 |
| Apr 22 | -2,461.72 | 1,602.35 |
| Apr 21 | -713.69 | 2,823.43 |
| Apr 20 | -3,009.26 | 2,645.82 |
| Apr 19 | -5,871.69 | 3,980.81 |
| Apr 18 | -6,387.45 | 3,341.96 |
| Apr 13 | -2,061.04 | 1,410.85 |
| Apr 12 | -3,128.39 | 870.01 |
| Apr 11 | -1,145.20 | -486.5 |
| Apr 8 | -575.04 | -16.51 |
| Apr 7 | -5,009.62 | 1,774.70 |
| Apr 6 | -2,279.97 | 622.92 |
| Total | -35,945.92 | 20,440.29 |
First Published: Apr 26, 2022 10:30 AM IST
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