It’s important to understand the factors driving the FII selloff in order to try and form expectations around when we may expect it to reverse
This month has already seen FII outflows of nearly Rs 50,000 crore – the worst in more than two years. For perspective, the selloff in May 2022 is second only to the pandemic-driven panicked outflow seen in March 2020. In fact, FIIs have been net sellers practically every month since April 2021. If we look at the corresponding DII flows, we can see that they have “mirrored” FII flows. In other words, DIIs have been net buyers of roughly the…
