WHY HAVE FIIS BEEN SELLERS IN THE MONTH OF AUGUST?

 Foreign Institutional Investors (FIIs) have been aggressively selling across emerging markets and India has been no exception. In the 4 weeks of August, FIIs have pulled out over Rs.15,000 crore from Indian equity markets with the trend turning sharply negative due to a combination of geopolitical uncertainty and weak earnings season in the June quarter. In fact, the month of April has been one of the worst months in terms of FII flows into India in the last 8 months. On the other hand, domestic institutions (DFIs) have been aggressive buyers in Indian equities in August and have infused nearly Rs.15,400 crore in August, which is holding up the markets. Consider the chart below which captures the gist of the cumulative FII selling that has happened in Indian equities.

                                                                                      

                                                                                                                                     Source:-Angel Broking Blog