FIIs sell $1 bn in Indian stocks ahead of key events

Moneycontrol Bureau

Foreign institutional investors (FIIs) have sold nearly USD 1 billion in Indian stocks in the last 14 trading sessions as uncertainty increased ahead of major local and global events. Since 10 October, FIIs have sold USD 1 billion in equity and have been sellers on all but two trading sessions over this period. So far this year, FIIs have remained net buyers of Indian equity and have bought USD 6.76 billion in domestic equity, Mint reported on Wednesday.

Market analysts told the newspaper that factors such as profit-booking, US presidential elections and impending rate hike by the US Federal Reserve have prompted FIIs to pull out. Besides, investors are also awaiting key domestic macroeconomic numbers such as September industrial production data slated to be released on November 11 and October’s wholesale price inflation and consumer price inflation data will be out on November 14.

Mint also quoted an analyst saying that the boardroom battle at Tata Group, tepid earnings show by IT and consumer companies and worsening fiscal data also unsettled the market.

Some experts also told Mint that “foreign investors are lightening their long positions ahead of the events like the US presidential elections, tensions along the Indo-Pak border, the Italian referendum and Fed outcome”.