Mumbai: While foreign portfolio investors (FPI) have remained heavy sellers in the domestic equity markets over the last two months amidst the escalation of geo-political tension, India focussed offshore funds are still seeing net inflow of funds, though at a lesser scale suggesting that a significant chunk of the selling is done by India focussed exchange traded fund (ETF), which are short term in nature.
FPIs have offloaded equities worth Rs 12,770 crore in August, their highest selling since January 2017. In September till date, they are net sellers to the tune of Rs 5,492 crore according to the data available with the National Securities Depository Ltd (NSDL).
According to Morningstar, India-focussed offshore funds, which are longer term in nature, witnessed net-inflow of $179 million in August whereas the India-focussed ETFs saw a net outflow of $39 million.
“Indian stock markets have done significantly better over the last few years. This coupled with rupee appreciation has given overseas investors a good profit booking opportunity. If seen from the perspective of global risk aversion, for them it is a good opportunity to capitalize on,” said Himanshu Srivastava, senior research analyst at Morningstar Investment.