FPI Flows In Feb’25 Negative For All Key Emerging Markets
FinTech BizNews Service
Mumbai, February 23, 2025: FIIs continued to be net cash sellers to the tune of Rs33,527.55 crores, so far in Feb’25.
According to Shrikant Chouhan, Head-Equity Research of Kotak Securities, Markets remained downbeat amid continued uncertainty on domestic growth, further exacerbated by threats of reciprocal tariffs. On the economy front, the goods trade deficit widened to US$2300 cr in January (December: US$2200 cr), as exports declined 2.4% yoy, while imports increased 10% yoy. FPI flows are expected to remain volatile.
FPI flows to date in Feb’25 were negative for all key emerging markets (except Brazil and Thailand). India, Indonesia, Malaysia, Philippines, S.Korea, Taiwan, and Vietnam, witnessed outflows of US$2320 mn, US$445 mn, US$192 mn, US$54 mn, US$781 mn, US$1391 mn, and US$273 mn, respectively. However, Brazil and Thailand witnessed inflows of US$346 mn and US$126 mn, respectively.
Nifty 50 and the Sensex 30 indices saw weekly loss
According to Shrikant Chouhan, Reciprocal tariff concerns continued to dominate the global and the Indian equity markets. Nifty 50 and the Sensex 30 indices saw weekly loss, whereas the BSE Midcap and the BSE SmallCap indices posted weekly gains. On the sectoral front too, the performance were mixed. BSE Metals and BSE Power were amongst the key gainer. BSE Auto led losses during the week as auto stocks were under pressure amid news report pertaining to possible sharp reduction in import duty. BSE IT and BSE healthcare were also impacted amid concerns over reciprocal tariffs by the US. Weak investment sentiment for emerging market, news flow on tariffs and monetary policy outcomes is expected to influence equity markets in the near term.
