Foreign Institution investors (FIIs) have consistently reduced their holdings in the Indian equity market in the last 6 months. This selling started in October 2021 when the markets were at their peak.
The expectation of a hike in interest rate by the Fed due to inflation in the US, and rising valuations in the Indian market led to the sell-off.
Apart from this, oil prices and other commodity prices are at their peak due to the Russia-Ukraine conflict. Which can reduce corporate earnings because the commodity is used as a raw material in many sectors.
In the last 6 months, both Nifty and Sensex have fallen more than 9%.
DIIs have pumped 1.42 lakh crores into Indian equity in the last 6 months. FIIs recorded a sell-off of 18615 crores in a few days of March 2022 start, but DIIs supported the market by investing 12600 crores.
This article is only for education purpose and the author has his own views and research, so if you invest in these stocks then do it at your own risk and do the research yourself before investing.