FPI
Foreign portfolio investors (FPIs) have broken their record after four years. FPIs have withdrawn Rs 94,000 crore (about US$11.2 billion) from the Indian stock market in October. Thus, this has been the worst month in terms of FPI withdrawals. Earlier, foreign portfolio investors had withdrawn Rs 61,973 crore from shares in March 2020. FPIs remain sellers in the Indian market due to high valuations in the domestic markets and attractive valuations of Chinese stocks. Before this latest withdrawal, FPIs had infused Rs 57,724 crore into shares in September. This was the nine-month high level of his investment. After withdrawing Rs 34,252 crore in April-May, FPIs were continuously buying since June.
For this reason investors are withdrawing money from the stock market
Himanshu Srivastava, associate director, manager research, Morningstar Investment Research India, said that in the future, global developments such as geopolitical developments, interest rate fluctuations, progress in the Chinese economy and the outcome of the US presidential election will shape foreign investment in Indian stocks. Will play an important role. He said that on the domestic front, FPI will keep an eye on the inflation trend, quarterly results of companies and festive demand data. According to depository data, FPIs made a net withdrawal of Rs 94,017 crore in October. FPIs are buying only one day in the entire month. In this way, their total investment in shares has come down to Rs 6,593 crore in 2024.
Big fall in Sensex and Nifty due to selling
Due to selling by FPIs, major indices have fallen by about eight percent from their peak level. According to the data, FPIs have withdrawn Rs 4,406 crore from bonds through the general limit and invested Rs 100 crore through the voluntary retention route (VRR) during the period under review.
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