Statsguru: FPIs often deploy cheap capital in EMs in search of high returns

Mutual fund investments of over Rs 1.7 trillion steadied the ship

Indian stock markets have seen foreign portfolio investors (FPIs) emerge as net sellers in a financial year only four times over the last 29 years. The total quantum of outflows in 2021-22 (FY22) was more than double the sum of all such years.

The FPIs were net sellers to the tune of Rs 1.4 trillion in FY22. They had previously emerged as net sellers of around Rs 88 crore in 2018-19 ahead of the general elections, Rs 14,172 crore in FY16 amid global risk aversion over liquidity tightening and Chinese economic volatility, and Rs 47,706 crore in FY09 during the global