foreign investors
Foreign investors are withdrawing money from the Indian market. It is now difficult to say when it will break it. Let us tell you that due to the tension about global trade by the US on countries like Canada, Mexico and China, foreign investors withdraws more than Rs 7,300 crore from local stock markets in the first week of the current month in the first week of the current month. Is. Earlier in January, FPI had withdrawn Rs 78,027 crore from Indian markets. According to depository data, in December 2024, FPI invested Rs 15,446 crore in Indian markets. Experts believe that the perception of the market will later be determined by global large economic developments, domestic policy measures and currency fluctuations.
Due to this FPI withdrawing money from the market
According to the data, foreign portfolio investors (FPIs) have withdrawn Rs 7,342 crore from Indian shares so far this month (till February 7). Research-Himanshu Srivastava, Associate Director-Manager of Morningstar Investment Research India, said that one of the main reasons for the withdrawal of FPI was global trade tension, as the US has imposed a fee on countries like Canada, Mexico and China, which has increased the possibility of trade war, which has increased the possibility of trade war . He said that due to this uncertainty, global investors have opted not to take risks. Due to this, they are withdrawing from emerging markets like India. Srivastava said that the Indian rupee has also come down to 87 per dollar for the first time. The weak rupee reduces the return of foreign investors and Indian properties become less attractive for them.
The reason for strengthening in the dollar index is also becoming
Jijit Financial Services’ main investment strategist VK Vijaykumar said, “The dollar is forcing the firmness in the index and the high -rate on American bonds to sell FPI to sell. FPI selling is expected to decrease later as the dollar index and American bonds are now showing softening trend. ”He said that the BJP’s victory in the Delhi assembly elections will have positive impact in the short term. However, the market will depend on moderate to long -term stance on economic growth and improvement in income of companies. The FPI loan or bonds are pure buying in the market in the period under review. During this time, he has invested Rs 1,215 crore under a simple limit in bonds and Rs 277 crore by voluntary retention route. It is noteworthy that FPI had invested a net investment of just Rs 427 crore in Indian stocks in 2024.
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