From the start of the COVID-19 pandemic, the Indian market saw panic selling by foreign institutional investors (FIIs). FIIs so far this year have been heavy sellers. Spooked by war and inflation worries, the selling spree shows no sign of abating.
Raamdeo Agrawal, Chairman of Motilal Oswal Financial Services, spoke with CNBC-TV18 on FII outflow shock amid negative global cues. He was not optimistic that FIIs will return.
Agrawal also believed the current outflow may continue in the near term with more intensity. The analyst observed that FIIs have not been in retreat mode in other emerging markets (EMs).
FIIs started selling Indian equities in October last year. They sold shares worth a net $20.7 billion since October 1, according to the Securities and Exchange Board of India. So far in 2022, FII sales have totalled $15.9 billion. As of April 24, they have sold $2.36 billion of shares.