New Delhi, Oct 28 (IANS): V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said FPI selling continues unabated impacting financial services and IT segment more than others.

In October, FPIs have sold equity for Rs 20356 crore. The selling through exchanges has been higher at Rs 25575 crores, he said.

FPIs were sellers in sectors like financials, power, FMCG and IT.

The primary reason for the sustained selling is the sharp spike in US bond yields which took the 10-year yield to a 17-year high of 5 per cent. The yield has now declined to 4.84 per cent. With such high bond yields it is rational for FPIs to take out some money, he said.

The Israel-Hamas conflict in West Asia and the uncertainty surrounding the conflict has added to negative sentiments in the market, he added.

An important feature of FPI investment is the increasing inflows into the debt market.

FPI selling has impacted the financial services and IT segment more than others. The reason is that these two segments account for the major part of FPI's AUM ( Assets Under Management).

Of the total FPI AUM of around $ 652 billion financial services account for $213 billion and IT accounts for $ 64 billion. It is important to note that stock prices in these segments are weak due to FPI selling and not due to any fundamental factors, he added.