The confidence of foreign investors in the Indian domestic stock market is continuously decreasing. Foreign Institutional Investors (FIIs) have been continuously withdrawing money from the Indian stock market for the last few days. This selling continued in December also. According to the data, foreign investors pulled out around ₹22,864 crore from the market in December. This selling by FIIs has had an impact on the stock market, due to which there has been a lot of pressure on the shares of many sectors. However, domestic investors have helped reduce the impact of this selling.
IT and service sector under pressure
Foreign investors are hesitant in investing in IT and service sector. In the last two weeks, foreign investors have pulled out around ₹3,300 crore from these two sectors. However, the pace of selling was slower than in November.
Huge withdrawal from financial sector
The financial services sector was most affected by the selling pressure of foreign investors. In the first two weeks of December alone, FIIs pulled out more than ₹6,500 crore from the sector. This pressure continued in November, but the outflows intensified in December, which had a clear impact on banking and financial stocks.
Foreign investors also made heavy sales in healthcare and power sectors. More than ₹2,100 crore were withdrawn from the power sector and more than ₹2,350 crore from the healthcare sector. The FMCG sector also saw pressure, although foreign investors sold slightly less than in November. Amid selling by foreign investors, domestic institutional investors have shown confidence in the market, which has helped arrest the market decline to some extent.
