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Below is quote on FPI/FII 03 June 2022 By Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services

"In May FPIs continued heavy selling in equity, particularly in financials and IT. Total selling in equity in May amounted to Rs 45276 cr. This takes the total FPI selling in 2022 till May 31st to Rs 173799 cr. This massive FPI selling is the major factor for the weakness in the Indian market.

However, there are signs of FPI selling exhaustion. In the early days of June, FPI selling is in very small amounts.

If the dollar and the US bond stabilises, FPI selling is likely to stop and may even reverse. On the contrary, if US inflation remains elevated and dollar and bond yields continue to rise, FPIs may resume selling. US inflation data is the key"

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