In October 2024, there has been an unprecedented amount of selling by Foreign Institutional Investors (FIIs) in the Indian stock market. They have offloaded equities worth Rs 92,142.97 crore, which is a historic high.

The main reason for this significant sell-off is the rising US interest rates, rather than a strategic shift towards Chinese markets. Despite the heavy selling by FIIs, domestic institutional investors have stepped in to minimize the impact on the market.

This is the fourth time since 2007 that FIIs have divested more than $10 billion in a single month. It is worth noting that while Indian markets have experienced declines, Chinese markets have seen even steeper falls from their recent highs, indicating a contrasting trend in investor sentiment between the two regions.