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Below is quote on FPI 27 May 2022 By Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services

"NSDL data shows FPI equity selling of Rs 44346 cr in May, up to 27th. However, FPIs had invested Rs 5208 cr in the primary market. FPIs has also sold the debt to the tune of Rs 2306 cr in May, up to the 27th. This is the eighth continuous month of selling in equity by FPIs. In 2022, so far, FPI selling in equity is a whopping Rs 172869 cr.

Relatively high valuations in India, rising bond yields in the US, an appreciating dollar and concerns regarding the possibility of a recession in the US triggered by aggressive tightening are factors behind FPI pullout. Recently, there are signs of selling exhaustion by FPIs and DII and retail buying is emerging as a strong counter to FPI selling At higher levels, FPIs may continue to sell. If globally markets are stable FPI selling will be easily absorbed by DII plus retail buying"

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