Nifty 17941.95 (-0.94%)
Sensex 60088.58 (-1.10%)
Nifty Bank 38041.6 (-0.44%)
Nifty IT 37300.4 (-2.08%)
Nifty Financial Services 18275.25 (-1.05%)
Adani Ports 744.00 (-2.48%)
Asian Paints 3284.00 (-2.66%)
Axis Bank 729.45 (0.59%)
B P C L 394.00 (-1.03%)
Bajaj Auto 3455.00 (1.59%)
Bajaj Finance 7574.80 (-2.18%)
Bajaj Finserv 18074.85 (-0.43%)
Bharti Airtel 705.00 (-1.31%)
Britannia Inds. 3579.40 (-1.17%)
Cipla 896.20 (-0.66%)
Coal India 164.00 (1.99%)
Divis Lab. 4471.35 (-1.23%)
Dr Reddys Labs 4690.00 (-0.08%)
Eicher Motors 2720.35 (-0.58%)
Grasim Inds 1811.15 (-2.22%)
H D F C 2619.35 (-1.62%)
HCL Technologies 1200.50 (-1.58%)
HDFC Bank 1517.65 (-0.76%)
HDFC Life Insur. 656.45 (-1.89%)
Hero Motocorp 2699.70 (0.25%)
Hind. Unilever 2309.85 (-2.52%)
Hindalco Inds. 504.75 (1.76%)
I O C L 125.40 (1.17%)
ICICI Bank 810.80 (-1.49%)
IndusInd Bank 891.10 (-0.95%)
Infosys 1864.95 (-2.91%)
ITC 220.50 (-0.11%)
JSW Steel 674.70 (-0.81%)
Kotak Mah. Bank 1905.70 (-1.88%)
Larsen & Toubro 2020.30 (-0.09%)
M & M 895.40 (0.36%)
Maruti Suzuki 8050.00 (1.70%)
Nestle India 18921.60 (-2.36%)
NTPC 134.90 (-0.07%)
O N G C 170.45 (4.03%)
Power Grid Corpn 205.05 (-0.05%)
Reliance Industr 2520.60 (-0.05%)
SBI Life Insuran 1249.00 (-1.34%)
Shree Cement 26396.00 (-2.80%)
St Bk of India 514.80 (1.58%)
Sun Pharma.Inds. 838.10 (-1.02%)
Tata Consumer 717.50 (-1.91%)
Tata Motors 521.10 (2.02%)
Tata Steel 1207.55 (1.06%)
TCS 3915.95 (-1.87%)
Tech Mahindra 1670.25 (0.57%)
Titan Company 2593.20 (-0.28%)
UltraTech Cem. 7426.00 (-1.72%)
UPL 812.45 (1.67%)
Wipro 621.20 (-1.91%)

IPO Flows make FPI Flows Look Rosy

IPO Flows make FPI Flows Look Rosy
by 5paisa Research Team 22/11/2021

You could call it the tale of 2 FPI flows. On the one hand, FPIs have been selling heavily in the secondary markets. This selling is on fears that inflation could go up further, Fed and RBI could hike rates sooner and valuation concerns could get elevated and highlighted.

The other is the consistent inflows into IPOs, especially the big digital IPOs like Nykaa, Policybazaar and Paytm. The anchor placements in these IPOs did see a robust response from these foreign portfolio investors.

If you look at the overall numbers for FPIs for the month of November, it looks quite impressive. FPIs infused a sum of Rs.19,712 crore into Indian markets in the month of November so far, which included Rs.14,051 crore by way of equity inflows and Rs.5,661 crore by way of debt flows.

The debt flows are normally indicative of reducing risk of interest divergence and also parking of funds on the lookout for opportunities.

The equity flows is a lot more interesting. Inflows of Rs.14,051 crore is nearly $2 billion in the first 2 weeks, which is quite impressive. However, there is a clear dichotomy here. FPIs actually pulled out Rs.9,128 crore from the equity secondary markets but infused Rs.23,179 crore into IPOs during this same period.

This is across some major big ticket IPOs that hit the primary markets in the first two weeks of November.
What explains this dichotomy. On the secondary markets front, the selling in equities is on account of concerns over inflation rate, interest rates and the valuations concerns highlighted by many of the large global brokers as well as by the RBI in its latest monthly bulletin.

That has kept the secondary market under pressure and the pressure is likely to continue until there is greater clarity on the macro front. 

However, the IPO flows could be the real challenge. Two major IPOs in the previous week viz. Paytm and Sapphire Foods are at a deep discount to their issue price.

That is unlikely to make the FPIs too happy and they are likely to be a little more wary participating in future anchor placements. The FPI enthusiasm would now largely depend on how the IPO markets perform. That is the challenge.

About the Author

Open Demat Account

Enter Mobile Number
Enter correct otp
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order
-666.28 (-1.10%)
Nifty 50
-171.10 (-0.94%)
Nifty Bank
-168.70 (-0.44%)
Next Article

Start Investing Now!

Open Free Demat Account in 5 mins

Enter Valid Mobile Number

Stocks Directory

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z All 0-9