FIIs Buy Indian Equities, Sell Debt in 2020

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FIIs Buy Indian Equities, Sell Debt in 2020
Credit: © Reuters.

By Aditya Raghunath

Investing.com -- FIIs (foreign institutional investors) have been major sellers of Indian debt in 2020, to the tune of $14.3 billion, even as they have bought equities worth $7.93 billion in the same period.

According to a report in The Mint, FII outflow from debt has been the most since 1999. “This is a sharp decline from a net inflow of $3.49 billion in the previous year and a net outflow of $9.36 billion in 2018,” said the report.

The Indian rupee has been weak this year and it is likely that FIIs would have looked to the US dollar as a safe haven. Apart from the weak rupee, the RBI (Reserve Bank of India) has also taken measures to ensure liquidity in the system and this has resulted in lower interest rates.

However, FIIs have bought equities worth almost $8 billion this year. November ($8.87 billion) and December ($5.61 billion) have seen massive buys this year that offset the first four months of the year (Jan-April) where FIIs sold off equities worth $12 billion.

According to Bank of America (NYSE: BAC ) Securities, FIIs could strengthen their position in financials, and the materials and industrials sectors. FIIs have so far been underweight in materials, healthcare, utilities, telecom, staples, and industrials.

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  • Arun Kumar @Arun Kumar
    has anybody noticed...fiis are building short position in INDEX FUTURES ??
    Like 0
  • Jacob Varghese @Jacob Varghese
    Better thet do not trade and mess up our market
    Like 3
  • V P SINGH @V P SINGH
    very informative
    Like 2
    • vikaspal singh Bhagtana @vikaspal singh Bhagtana
      Same name👍VPSINGH
      Like 0

      • Comment Guidelines

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