Foreign Portfolio Investors (FPIs) have continued their selling trend in the second week of October, driven by high US bond yields. As of October 13, FPIs offloaded ₹9,784 crore worth of Indian equities, including debt and hybrid instruments. This trend began in the previous month. The sustained rise in US bond yields has been the primary driver of this trend.
While FPIs were net sellers last month, domestic institutional investors (DIIs) injected ₹19,310 crore in September, offsetting the FII selling. Analysts note that amid elevated US bond yields and a stronger dollar, FPIs may not immediately reverse their selling stance, and positive Q2 results in the financial sector may influence their behavior.