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Below the Quote on FPI - FII details by Shrikant Chouhan, Head Equity Research, Kotak Securities

Q) The amount/reason for outflow/inflow (1st Aug to 8^th Aug 2024).

FIIs turned net cash sellers to the tune of Rs. 20,767.20 crores, to date in Aug’24.

Q) How is the future FPI flow expected to be?

The market performance was impacted by a confluence of global factors, such as 1) a sharper-than-expected weakening of the US labor markets, 2) a sharp appreciation of USD-JPY, resulting in the unwinding of Yen carry trades globally, and 3) an increase in geo-political tensions in the Middle East. On the economy front, the RBI kept rates unchanged while broadly retaining its FY2025 growth (7.2%) and CPI inflation (4.5%) projections. FPI flows are expected to remain volatile.

Q) How are other emerging markets performing?

FPI flows to date in Aug’24 were mixed for emerging markets. India, Brazil, Malaysia, Philippines, S.Korea, Taiwan, Thailand, and Vietnam witnessed outflows of US$985 mn, US$70 mn, US$68 mn, US$34 mn, US$1608 mn, US$3198 mn, US$48 mn, and US$120 mn, respectively. Indonesia witnessed inflows of US$67 mn.

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