Foreign Investors There is a huge sell-off going on in the Indian market. Its effect is visible on the stock market. Big fluctuations are being seen in the stock market. Let us tell you that shares worth Rs 32,684 crore were sold by foreign portfolio investors (FPI) in the Indian stock market (till August 17). At the same time, about Rs 11,483 crore has been invested in the primary market and other categories. This information was received from the industry data released on Saturday. Market experts say that this trend may continue in the coming times as well. Indian markets are currently trading at premium valuations. Because of this, foreign investors are investing their money in cheap markets. Further said that if the market boom continues, then there will be no change in this situation. Of course, the risk of recession in America may reduce.
Volatility and risk aversion remain in the market
Vipul Bhowar, Director of Listed Investments at Waterfield Advisors, said that at present, the market is facing volatility and risk due to yen carry trade, global recession, slowing economic growth and increasing global tensions. Bhowar further said that after making net purchases in June and July, FPIs are now selling. At the same time, mixed quarterly results and high valuations have made the Indian market less attractive.
Low valuation in primary market
The primary market is still trading at low valuations. On the other hand, valuations in the secondary are currently high. For this reason, FPIs are buying in the primary markets, where valuations are cheap, and selling in the secondary markets. In the last 12 months, FPIs have invested Rs 64,824 crore in the Indian markets. According to the data, during this period, FPIs have invested a total of Rs 1,82,965 crore and have sold a total of Rs 1,18,141 crore.
Input: IANS
Latest Business News
