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Below the Quote on FPI flows from Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited

“The trend of FPI flows turning negative after positive inflows in July and August was evident early this month. This trend has sustained and the total equity outflows through exchanges have touched Rs 25682 crores this month through 25th August. Also the trend of FPI investment through the primary market continues with total investment of Rs 8551 crores up to 25th of this month. This trend of selling through the exchanges and investing through the primary market has taken the total FPI selling this year through exchanges to Rs 295971 crores and the total investment through the primary market during this period to Rs 54398 crores. 

Given the high US bond yields and better returns from India’s IPO market, this trend is likely to continue. Yet another significant trend in FPI investment is that even though they are sellers in large-caps, they have been sustained buyers in mid-and small-caps. FPIs also are chasing the market momentum.”

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