Foreign portfolio investors (FPIs) pulled out Rs 2,249 crore from the equity segment in the country during the first seven trading sessions in July after a month of net inflows. The major reason for this could be profit booking by these investors. With the markets trading near their highs, many investors are proceeding cautiously.
VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said it is good that foreign investors are not selling too much. “Valuations are up and there are no signs of a major downside in the market. In the US, 10-year bond yields have declined by about 1.3 per cent, driving the market towards equities,” he said.
In June, FPIs had net investments of about Rs 13,269 crore in equity and debt markets of the country. However, they were net sellers in April and May.
