FPIs parked net $2.36 billion (₹19,841.9 crore) in the primary market, the highest monthly investment since November 2021 when they had invested $3.74 billion through this route, which consists of participation in initial public offerings (IPOs) and qualified institutional placements (QIP).
FPIs invested a net $10.27 billion in the first 10 months of 2024 in the primary market.
In the secondary market, they sold equities worth $13.56 billion (₹1.1 lakh crore) in October, the highest-ever monthly outflow, surpassing the $8.12 billion worth of selling in March 2020. The rising attractiveness of Chinese equities amid economic impetus by the local government has lured FPIs away from Indian equities.
With the mega selloff in October, FPis have sold equities worth $9.42 billion net in the secondary market in 2024 so far. As a result, the net inflow of FPIs in the primary and secondary markets together has reduced to $858.9 million so far in 2024 compared with $12.05 billion at the end of the previous month.
AgenciesDespite such concentrated selling by foreign investors in the secondary market, the fall in the benchmark indices was limited to around 6% in October, helped by a sharp improvement in investment by domestic institutions. According to the data from the market regulator Securities and Exchange Board of India, domestic mutual funds invested a record net ₹87,228 crore (over $10.3 billion) in October (till 29th). Local funds have invested ₹3.7 lakh crore so far this calendar year on a net basis, far outpacing the investment of ₹1.7 lakh crore during the previous calendar year. This was also higher than the previous record of nearly ₹2 lakh crore investment in 2022.