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Below the Quote on FPI from Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services 

After three months of sustained buying with cumulative investment of Rs 137603 crores, FPIs turned sellers in August. The consolidated NSDL data shows the August FPI investment through 18th at Rs 8993 crores. But this figure includes bulk deals and investment through the primary market. In the cash market FPIs sold stocks for Rs 10921 crores and they were sellers in ten days and buyers in only three days in August, so far. Strength in the dollar index at well above 103 and the  US 10- year bond yield remaining around 4.25 % are short-term negatives for FPI flows to emerging markets like India.

FPIs continue to be consistent buyers in capital goods and power. And, of late, they have started selling in financials.  FPI selling is countered by DII buying, but this is turning out to be inadequate to arrest the decline in the market.
In view of the strong dollar and rising US bond yields, FPIs are likely to continue selling, in the near-term.

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