FPI selling bouts are nothing new. We have seen that in the past, but it does intuitively look like this one of the worst bouts of FPI selling that India has ever seen.
Month | Secondary Market Flows # | IPO Flows # | Total Equity Flows # |
Oct-21 | -1931.62 | 124.24 | -1807.38 |
Nov-21 | -4535.99 | 3745.65 | -790.34 |
Dec-21 | -4333.13 | 1808.35 | -2524.78 |
Jan-22 | -4437.78 | -22.04 | -4459.82 |
Feb-22 | -5144.48 | 402.23 | -4742.25 |
Mar-22 $ | -5397.96 | 3.67 | -5394.29 |
Total | -25,781 | 6,062 | -19,719 |
Period | FPI sell-off amount | Reason for sell-off |
Jan-2008 to Jan-2009 | $16.00 billion | Global sub-prime crisis and near bankruptcy of most wall street banks and investment houses |
Jun-2013 to Sep-2013 | $4.00 billion | Taper tantrum after US Fed hinted at unwinding its $4 trillion bond book |
Feb-2015 to Feb-2016 | $8.00 billion | US commences first rate hike since the Global Financial Crisis and hints at liquidity tightening |
Feb-2018 to Dec-2018 | $8.00 billion | IL&FS bankruptcy, NBFC crisis and tightening measures announced by Reserve Bank of India |
Jan-2020 to Mar-2020 | $9.60 billion | COVID pandemic and a global shutdown of economic activity drives FPIs to safe havens |
Oct-2021 to Mar-2022 | $19.72 billion | Crude price spike, Fed hawkishness, input cost inflation and Russia Ukraine war |
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