Malaysia, Germany step in; Singapore, Ireland lead August equity sell-off

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Despite heavy foreign outflows from Indian equities in August, a few countries bucked the trend and turned net buyers. According to NSDL data, Malaysia, Germany, the Cayman Islands, Canada and Kuwait invested selectively, even as Singapore and Ireland led the equity sell-off.

Overall, foreign institutional investors (FIIs) remained aggressive sellers of Indian equities in August, withdrawing Rs 34,993 crore amid stretched valuations, weak corporate earnings and mounting global tariff concerns.

Meanwhile, Malaysia emerged as the largest buyer in August, infusing Rs 6,883 crore into equities and Rs 408 crore into debt instruments. Germany followed with Rs 905 crore in equities and Rs 2,285 crore in debt, while the Cayman Islands added Rs 485 crore in equities alongside Rs 103 crore in debt, according to NSDL data.

Canada invested Rs 375 crore in equities and Rs 930 crore in debt, whereas Kuwait confined itself to equities with Rs 245 crore, staying away from debt markets.

The picture was starkly different in July, when France stood out as the largest net buyer with Rs 14,580 crore in equities and Rs 3,300 crore in debt. Luxembourg and the United Arab Emirates followed with net equity inflows of Rs 2,133 crore and Rs 1,821 crore, respectively, though their debt investments were modest at Rs 183 crore and Rs 215 crore.

Ireland and Germany also posted net positive inflows in July, with Ireland adding Rs 1,800 crore in equities and Rs 1,770 crore in debt, while Germany committed Rs 1,365 crore to equities and Rs 330 crore to debt.

By contrast, Singapore emerged as the biggest seller in August, pulling out Rs 3,500 crore from equities even as it invested Rs 5,393 crore in debt. Ireland too sold equities worth Rs 1,593 crore but compensated with Rs 1,817 crore in debt purchases.

The Netherlands offloaded Rs 859 crore in equities while adding Rs 1,015 crore to debt instruments. Other countries, not individually disclosed, together sold equities worth a staggering Rs 51,566 crore, though they invested Rs 7,903 crore in debt.

Interestingly, the trend was already visible in July, when Singapore offloaded both asset classes, exiting Rs 11,670 crore from equities and more than Rs 7,600 crore from debt.

The United States too was a net equity seller with outflows of Rs 9,333 crore, but added Rs 1,230 crore in debt instruments in July. The Netherlands, while pulling out of equities, invested Rs 2,570 crore in debt, and Japan exited Rs 537 crore in equities while ramping up debt purchases by Rs 7,420 crore, NSDL data added.