FPIs take a flight; as sentiments weigh heavy

Mumbai, Sep 27 (IANS) Foreign Portfolio Investors (FPIs) became net sellers in the Indian equities market for the week ended on Sep 26, as negative global and domestic cues dented sentiments.

The foreign institutional investors (FIIs) along with sub-accounts and qualified foreign investors have been clubbed together by market regulator Securities and Exchange Board of India (SEBI) to create a new investor category called FPIs.

FPIs massively sold stocks worth Rs.2,487.02 crore in the week ended on Sep 26. The FPI’s only bought shares worth $75.40 million or Rs.458.34 crore during the week ended on Sep 26, according to data with the National Securities Depository Limited (NSDL).

For the week ended on Sep 19, the FPIs had bought shares worth $354.24 million or Rs.2,159.67, which helped propel the Indian equities market to subsequent new highs.

The FPIs had remained net sellers Friday. They sold shares worth $68.21 million, or Rs.416.26 crore, on Sep 26.

Negative domestic sentiments were cited as a major cause for FPIs pulling back. Other reasons such as global strength in U.S. dollar amid further signs of economic recovery in the US too led FPIs on a selling spree.

Negative domestic sentiments too prevailed, as the Supreme Court cancelled all coal blocks allocated between 1993 and 2011.

Scrips of banks, metal, cement and energy companies tumbled. Globally, China hinted at not going ahead with its stimulus programme, which also spooked the markets.

The European PMI data also did not help the markets which continued its slide coupled with anxeity over an early hike in interest rate also impacted investor sentiments.