FPI
Foreign portfolio investors (FPIs) once again took a big U-turn and sold the Indian stock market in a big way in October. Before this, foreign investors were investing in the stock market for three months. Foreign investors remained consistent buyers in June and July after post-election jitters subsided and stability returned to Indian markets. According to National Securities Depository Limited (NSDL) data, FPIs sold Indian equities worth ₹27,142 crore till October 4.
What triggered the selloff?
D-Street experts say geopolitical tensions in the Middle East have become a major concern for global equity markets. But markets have so far ignored these tensions. Although crude oil prices have risen in recent times, there has been no sharp rise yet. If
Impact of better performance of Chinese shares also
The better performance of Chinese stocks has also led to selling in the Indian market. A major part of this selling took place on Thursday alone, worth ₹15,243 crore, the largest daily withdrawal by foreign investors in the last four years. Concerns are rising about FPIs pulling back investments in China, especially as Beijing has implemented policy measures to revive its struggling economy and strengthen its capital markets.
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