FPI: The process of withdrawal of foreign portfolio investors (FPIs) from the Indian markets is continuing for the sixth consecutive month. So far in March, FPIs have pulled out a net Rs 45,608 crore from the Indian markets. VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said FPIs are of the view that higher commodity prices will affect India the most. This is because India is a major importer of crude oil.
Rs 41,168 crore withdrawn from shares
According to depository data, FPIs have withdrawn Rs 41,168 crore from equities during March 2 to 11. Apart from this, they have withdrawn Rs 4,431 crore from the debt or bond market and Rs 9 crore through hybrid channels. Thus his net withdrawal has been Rs 45,608 crore. This is the sixth consecutive month that FPIs continue to be sellers in the Indian markets.
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What do experts say?
Vijayakumar said mainly FPIs are selling shares of financial and IT companies. The reason for this is that these stocks hold the largest share in the portfolio of FPIs. Nimish Shah, Chief Investment Officer (Listed Investments), Waterfield Advisors said that the dollar is strengthening from August-September 2021. Interest rates in the US are also rising now. His evacuation has also increased due to geopolitical tensions, he added.
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Shrikant Chauhan, Head of Equity Research (Retail), Kotak Securities said that in March so far, all emerging markets have pulled out except Thailand. So far this month, $7089 million, $2665 million, $426 million and $26 million have been withdrawn from Taiwan, South Korea, Indonesia and the Philippines, respectively. At the same time, FPIs have put $ 102 million in Thailand’s markets during this period.