On Tuesday foreign investors sold shares worth 5.8 million, provisional data on exchanges showed. (PTI)
Foreign Portfolio Investors (FPIs) continued their selling spree in the first session of October after offloading equities worth $ 3.6 billion in the last two months. On Tuesday foreign investors sold shares worth $105.8 million, provisional data on exchanges showed.
FPIs sold Indian equities worth close to $1.6 billion in September, after offloading stocks worth nearly $2 billion in August. Sensex at the present levels of 31,497.38 trades at a price-earnings multiple of over 17.95 times one-year estimated forward earnings.
Brokerages have been expressing caution the Indian market is overvalued. They have also flagged the downwards revisions to earnings estimates. Concerns over steep valuations have seen investors take risk off the table.
Earnings estimates for FY18 are being trimmed with almost every sector having seen a downgrade. Net profits for the Nifty set of companies fell around 11% year-on-year in Q1FY18, disappointing the Street.
Geopolitical tensions have also weighed on investor sentiment. Among the emerging markets (EMs), Taiwan has witnessed outflows in at $ 99.8 million. FPI sales in Indonesia was at $ 135.7 million.
