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Charts & Analysis

FIIs Sell 60,000 cr. in Two Months, Highest Exits Ever

FIIs have been leaving in droves, it seems and the last two months have been the worst, on a monthly basis, in FII history. They have sold more than 60,000 cr. of debt and equity investments, with the break up being: Debt (44,000 cr.), Equity (16, 400 cr,).

Net Monthly FII Investment

Source: SEBI

With over 40,000 cr. leaving our markets – both debt and equity combined – in June, weakness in the rupee became apparent. Even though the RBI and the government freed FII investment limits in debt, the extra investment that came hasn’t been quite that much. Look at the data since 2007, alongside the rupee average rate for the month:Net Monthly FII Investment (with Rupee rate) chart

(Source : SEBI)

Debt investments shot up around Jan 2012, but have since tapered down, and then gone deeply negative. Equity investments have been heavy in late 2012 and 2013, but even that has reversed in June/July.

August is also deeply negative with more than Rs. 2,300 cr. net sales including debt and equity, and it’s just until the 7th we have data for.