what once again Foreign investors (FPIs) seem eager to destroy the Indian stock market? This is because FPIs have made record sales so far in the month of January. Let us tell you that till January 25, foreign investors have sold shares worth Rs 27,664 crore. It is good for the small investors of the country who are not allowing a big fall in the market. They are buying heavily amid this sell-off. If they had not bought, there would have been a big fall in the market.
FPI sold in these sectors
VK Vijayakumar, chief investment strategist at Geojit Financial Services, said FPIs remained sellers in the cash market and have sold equities worth Rs 27,664 crore till January 25. FPIs sold auto and auto accessories, media and entertainment and marginally IT. They bought oil and gas, electricity and select financial services, he said.
For this reason they are withdrawing money from the Indian market
Rising bond yields in the US are a matter of concern and have triggered the latest round of selling in the cash market. The rally in global stock markets was triggered by the Fed’s pivot, which saw 10-year bond yields fall from 5 percent to about 3.8 percent. The 10-year is now back at 4.18 percent which indicates a Fed rate cut will only happen in the second half of 2024, he said.
Investment in ETF increased rapidly
According to a report by Kotak Institutional Equities, listed funds saw inflows of $2 billion, entirely due to investments in ETFs. India-dedicated funds saw inflows of $3.1 billion, divided into $2 billion investments in ETFs and $1.1 billion non-ETF inflows, while GeM funds saw outflows of $247 million, led by $337 million non-ETF inflows. -ETF inflows offset $90 million.
Where is selling and where is buying
Listed emerging market fund flows were mixed. South Korea, Indonesia and Taiwan saw offloading of $3 billion, $262 million and $76 million respectively. China, India and Brazil saw investments of $10.8 billion, $2 billion and $186 million respectively. Total FPI and EPFR activity showed different trends for Indonesia, South Korea and Taiwan.
Input: IANS
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