Bearish Cues: FPI Outflows Pressure HDFCBANK, RELIANCE, INFY

Zerodha's Nithin Kamath highlighted that global investors are turning cautious on fresh allocations to Indian equities. The comment reinforces an ongoing trend of FPI pullback from Dalal Street, raising concerns about sustained foreign selling in heavyweight stocks.

FPIs remain a key marginal buyer for Nifty50 names; persistent outflows weigh on index performance and INR. With valuations still rich versus EM peers, Indian equities risk de-rating until global risk appetite or relative growth premium improves.

FPI-heavy largecaps like HDFCBANK, ICICIBANK, RELIANCE and INFY tend to underperform during outflow phases. Banking and IT, with the highest foreign float, bear the brunt, while DII-favored midcaps and PSU names show relative resilience.

Track daily FPI/DII flow data from NSE, USDINR levels above 84.50, and US 10-year yields. A reversal in flows or dovish Fed cues would mark the turning point; until then, fade rallies in FPI-heavy names.

• •Nithin Kamath cited industry feedback on global investor caution
• •Concerns center on fresh capital allocation to Indian equities
• •Signals continuation of FPI pullback theme on Dalal Street