Stocks worth over Rs 22,000 crore sold by FPIs so far in May due to elections

Due to the election environment in the country, there are ups and downs in the stock market. This uncertain environment may be a sign of a change in the mood of foreign investors. Companies that are heavily invested by foreign portfolio investors (FPIs) are currently under pressure, as Indian stocks have seen massive selling by FPIs during May. After a profitable sale of Rs 21,524 on Dalal Street in April, shares worth over Rs 22,000 crore have been sold by FPIs so far this May.

Of the more than 100 stocks in which FPI holding was more than five per cent till March 31, 2024, share prices have declined by ten per cent to 30 per cent in the last month. The decline in Nifty is 1.7 percent.

In the current scenario, FPIs have adopted a risk averse strategy. The reason for which is the ongoing Lok Sabha elections in the country. FPIs and Heavy Stocks Limited are likely to maintain this trend till the completion of elections in the country. FPIs and big stocks like Aster DM Health, Sonata Software, Paisalo Digital, Gujarat State Patronate, Coforge and Birlasoft have seen their prices fall by 20 to 30 per cent in the last month.

Although a bearish trend can be seen in the stock market due to heavy selling by foreign investors, there may be widespread selling among the investor community after the weaker than expected results of some of these companies.