Quote on FPI flows 22nd Feb 2026 from Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited
Below the Quote on on FPI flows 22nd Feb 2026 from Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited
"The war in West Asia has aggravated the selling by FPIs. The volume and intensity of FPI selling increased in recent days when the conflict escalated. FPIs were net sellers on all trading days in March. The total FPI selling through exchanges through 20th March stood at a massive Rs 90152 crores. ( Source:NSDL)
The weakness in global equity markets following the war in West Asia, the steady depreciation of the rupee and concerns surrounding the impact of high crude price on India’s growth and corporate earnings contributed to the concern of FPIs. The poor returns from India vis a vis other markets - both developed and emerging- during the last eighteen months is the principal reason for FPI’s indifference towards India. If their sustained selling strategy is to change, there should be clear indications of earnings recovery in India. In the present uncertain context, this will take time.
The complete negative stance of the FPIs towards India is evident from the fact that they are selling recklessly without regard for valuations. For instance, during the fortnight ending 15th March, FPIs sold financial services stocks for Rs 31831 crores. Financial services are doing well and their valuations are fair. Despite this, FPIs sold massively in this sector because this sector accounts for about 32 % of the Assets Under Custody of the FPIs. The sector has liquidity and it is easy to sell and exit.
A reversal of the FPI selling will happen only when the war ends and normalcy returns to the market."
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