In October 2024, foreign institutional investors (FIIs) have made tremendous selling in the secondary market. In October itself, FIIs have sold $10 billion in the cash market so far. However, the trend of foreign institutional investors has increased in the primary market. Amidst the ever-increasing trend in the IPO market, FIIs have made purchases worth $645 million. According to NSDL data, FIIs have been continuously selling in the cash market for the last 14 sessions.

FIIs have sold the most in October compared to any other month. Earlier, during March 2020, FIIs had sold $8.3 billion in the cash market.

Meanwhile, due to the IPOs of many big companies, their interest in the primary market has increased. Garuda Engineering and Hyundai Motor India are raising around ₹28000 crore. Apart from this, 5 SME IPOs launched in October have raised around ₹267 crore. The market digested the decision of the US Fed. Moneycontrol quoted experts in a report that the market had already anticipated a 50 basis point cut by the Fed. This cut happened in September. Even after this, the US economy is seeing strength. The US dollar has also strengthened in the last three weeks, which has also increased the US yield. FIIs outflow in India has been seen due to many reasons. Which factors reduced the interest of FIIs? After the announcement of the relief package in China, the markets here saw a tremendous boom. In such a situation, foreign institutional investors turned to the market here. Analysts also say that the Indian markets were historically at record high levels. This boom was seen in the market amid inflation pressure, low economic growth, high taxes and interest rates remaining at high levels. Amidst these challenging macroeconomic conditions, the results of companies in many sectors have also disappointed. Due to all these factors, the outflow of FIIs is being seen in the Indian market. The market is supported by the tremendous buying by DIIs . Earlier in the month of September, FIIs were net buyers in the Indian market. Experts say that the concern that has emerged about valuation at present is largely due to the trend of selling in India and buying in China. In terms of valuation, the Chinese markets are looking more attractive to these investors in the short to medium term. This is the reason why the outflow of FIIs in India may continue for some time. On the other hand, tremendous inflow from domestic institutional investors (DIIs) continues. This has also supported the Indian market.