Foreign portfolio investors (FPIs) have sold equities worth $ 2.1 billion in August, amid concerns over steep valuations and tepid growth in the recently concluded results season. The selling in August is the highest monthly outflow since November 2016.
The net investments are at $6.8 billion so far this year. Foreign Portfolio Investors (FPIs) on Monday sold equities worth $19.5 million, provisional data on exchanges showed.
Barring three, overseas investors remained net sellers in all sessions in August. Market participants said that there was a state of exhaustion amongst investors and the selling could be an attempt to take some money off the table.
The benchmark Sensex at current levels of 31,750.82, trades at a price -earnings multiple of over 18.72 times one-year estimated forward earnings, a 20 per cent premium to the long-term average multiple.
Among the emerging markets (EMs), India witnessed highest outflow in August, followed by South Korea which saw an outflow of $1.12 billion during the month. FPI sales in Taiwan and Indonesia are relatively smaller, where foreign investors sold $258 million and $351 million, respectively.