Foreign portfolio investors (FPIs) sold shares worth a record Rs 1.4 lakh crore in FY 2021-22. Whereas earlier in 2020-21, he had bought shares worth Rs 2.7 lakh crore. Withdrawals were made in nine out of the 12 months of the previous financial year. Foreign investors have been selling shares in the domestic market continuously since October 2021.
How much was withdrawn: As per the depository data, the withdrawal of this amount from the domestic stock market is the highest in a single financial year. Earlier, shares worth Rs 88 crore in 2018-19, Rs 14,171 crore in 2015-16 and Rs 47,706 crore in 2008-09 were sold by FPIs.
What is the reason: The capital outflows were mainly due to a sharp rise in coronavirus cases, risks to economic growth and global turmoil over the Russo-Ukraine war. Experts believe that in view of the rise in crude oil prices and increase in inflation, investment inflows from FPIs may remain fluctuating in the near future.
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Explain that foreign investors invested Rs 1,628 crore net in the bond market in 2021-22. Whereas a year ago in 2020-21, Rs 50,443 crore was withdrawn.