Stock market
Foreign portfolio investors (FPIs) continue to withdraw withdrawal from Indian stock markets. The FPI has withdrawn more than Rs 30,000 crore from the local stock markets in the first fortnight of March amidst increasing tension over global trade. Earlier in February, he withdrawn Rs 34,574 crore from shares and Rs 78,027 crore in January. According to depository data, in 2025, the FPI has so far withdrawn a total of Rs 1.42 lakh crore (US $ 16.5 billion) from the Indian stock market.
The 14th consecutive week withdrawn
According to the data, foreign portfolio investors (FPI) have pure Rs 30,015 crore from Indian stock markets this month (till March 13). This is the 14th consecutive week of their net withdrawal. FPIs have been selling continuously for a long time with many global and domestic factors. Research Himanshu Srivastava, Associate Director of Morningstar Investments, said, “The uncertainty on the US trade policies led by President Donald Trump has affected the ability to take risks globally. In such a situation, FPIs are taking vigilance on emerging markets like India.
Why FPI selling shares
The other major factors promoting FPI withdrawal are a boom and dollar strengthening in the US bond yield. This has made American securities more attractive. Also, the decline in Indian rupee has further increased this trend, as it reduces returns for foreign investors. VK Vijaykumar, the main investment strategist at Jiojit Financial Services, said that FPIs are withdrawing money from India and putting them in Chinese shares. The performance of China’s stock markets is better than other markets. He said, “The recent decline in the dollar index will limit the flow of funds in the US. However, due to uncertainty arising from trade war between the US and other countries, there is a possibility of more investment in safe asset class like gold and dollars. ‘
1.71 lakh crore rupees in 2023
According to the data, the FPI has invested Rs 7,355 crore under the normal limit in the bond during the period under review and withdraws Rs 325 crore from the voluntary retention route. The FPI’s investment in the Indian market in 2024 was quite reduced to Rs 427 crore. Earlier in 2023, he had invested Rs 1.71 lakh crore in the Indian market. Whereas in 2022, the global central banks withded with an aggressive increase in interest rates by Rs 1.21 lakh crore.
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