FPI Registered Their Highest Selling In 2024, Sold Stocks Worth Rs.12,436 Cr

Foreign Portfolio Investors turned to net sellers yesterday by selling stocks worth Rs.12,436 crores according to the National Stock Exchange data, This comes after rising volatility and uncertainty from the unexpected results of the seven-phased general elections. The selling also led the benchmark index NIFTY 50 to plunge by  5% yesterday recording its highest-ever in a single-day fall since the Covid-19 crash.

FPI sold stocks worth Rs.12,436 Crores

According to provisional data from the National Stock Exchange, foreign portfolio investors (FPIs) have sold stocks worth Rs 12,436 crore, marking the highest selling activity by FPIs in 2024. This significant sell-off came after the unexpected results from the seven-phased Lok Sabha elections.

Additionally, domestic institutional investors (DIIs) turned net sellers after ten consecutive sessions of buying, and offloading equities worth Rs 3,319 crore. This sale by DIIs is the largest since April 5. The combined actions of both FPIs and DIIs underscore the heightened market volatility amid political uncertainty. The selling pressure from the institutions tumbled the Indian equity markets.

Overall FII Position in 2024

The overall FII equity market position for this year stands as negative. Foreign Institutions have been net sellers of Indian equities worth more than Rs.1,30,000 crore so far in 2024. The FIIs have been net sellers in every month except March in this year. The largest net selling month till now has been the month of May with the net cash market sold by FIIs stood at Rs.42,214 crores.

Conclusion: The unexpected political uncertainty has led to a huge selling pressure in the equity markets. FIIs registered their highest selling figures yesterday and following this the Indian equity markets tumbled. The benchmark index NIFTY 50 plunged by 5.9% while Sensex was down 5.75%. Amid this huge selling pressure, both NIFTY 50 and Sensex have wiped off their 2024 gains. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.