There has been no decline in the sale of stocks by foreign investors. Money is constantly being taken out of the Indian stock market by foreign investors. Even in January, this number remained unchanged. Foreign institutional investors (FIIs) have been selling in the Indian stock markets from January 2025.
FPI: The selling of stocks by foreign investors is not abating. Money is continuously being taken out of the Indian stock market by foreign investors. Even in January, this number remained unchanged. Foreign institutional investors (FIIs) have been selling in the Indian stock markets from January 2025. A total of Rs 64,000 crore was taken out of equity in January.
FPIs withdrawn from the stock market
FPIs continue to be reluctant to leave Indian equity markets, and have pulled out Rs 64,156 crore so far this month. This is happening due to the devaluation of the rupee, rising US bond yields and weak quarterly results. Depository data shows that foreign portfolio investors (FPIs) invested Rs 15,446 crore in December.
Foreign investors are pulling money out of the Indian equities markets as a result of the ongoing decline in the Indian rupee, according to Himanshu Srivastava, Joint Director-Research Manager at Morningstar Investment Advisors India. Aside from this, he claimed that investors are becoming apprehensive due to the high valuation of Indian stock markets in spite of the recent downturn, relatively poor quarterly results, and macroeconomic challenges. Apart from this, investors have also been compelled to exercise caution due to Donald Trump’s unpredictable plans.
Investors are compelled to avoid hazardous investment opportunities in such a scenario. The data shows that FPIs have sold shares of Indian stocks for a total of Rs 64,156 crore so far this month (through January 24). This month, FPIs sold on every day but January 2. According to VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the primary drivers of FII selling have been the dollar’s sustained strength and the increase in US bond yields.
The selling is anticipated to continue as long as the yield on US 10-years US bonds stays above 4.5 percent and the dollar index stays above 108. FPI selling is causing losses in the financial sector in particular. However, there was some purchasing in the IT industry.
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