ITC shares slid 2% on Thursday after GQG Partners shed a 3% stake worth ₹9,400 crore, marking the biggest single‑day FPI exit since May 29.
Foreign portfolio investors (FPIs) have pulled more than $60 billion from Indian equities since late 2024, the largest sell‑off since the 2022 Covid‑driven run‑down. Bloomberg data shows another $1.34 billion was dumped on Thursday, the highest daily outflow since May 29 when FPIs shed $2.3 billion.
Domestic institutional investors (DIIs) have been the counterweight, buying ₹2,419 crore in ITC shares via ICICI Prudential Mutual Fund and ₹968 crore via SBI Mutual Fund, while Fidelity Advisor Overseas Fund added a 1% stake for ₹3,448 crore. In total, DIIs purchased more than $180 billion worth of shares during the same period – roughly three times the FPI sales.
The Nifty 50 has declined 14% since September 2024, a much milder slide than the 40% fall during the 2020 Covid sell‑off or the 60% slump in 2008. Sector‑wise, financials and technology led the outflows, whereas industrials, metals and utilities continued to attract inflows.
The rupee has weakened 7.1% year‑to‑date, compounded by higher global yields and a stronger dollar, while Brent crude rose 5.3% to cross $105 a barrel – the biggest single‑day gain in nearly a month. UBS’s Gautam Chhaochharia said “crude prices remain the dominant concern for global investors, but there’s no clear sign of significant FPI inflows.”
Looking ahead, the market will watch next‑quarter earnings, especially from ITC and other technology names, and any policy changes that could curb FPI outflows. Investors will also keep an eye on the RBI’s stance on interest rates and the USD/INR trajectory.