Valuations, sharp rise in oil made FPIs nervous since October: Jefferies

In the last six months, the S&P BSE Sensex and the Nifty have slumped around 7 per cent each as foreign investors dumped Indian stocks across the board

Foreign portfolio investors have sold Indian equities to the tune of $19 billion since October 2021 as rising crude oil prices and steep valuation of the markets made them nervous, said a recent note by Jefferies who met with nearly 50 fund houses across Singapore and Europe.

"India positioning has come down to neutral/slight overweight level; implying 50-100 basis points (bps) weight reduction on India over the last 3-6 months. Premium valuation still remains the key discomfort along with higher oil; although there's a buy-in on the structural India growth story," wrote Mahesh Nandurkar, managing director at Jefferies in a