Is Indian Stock Market Is there going to be a big decline once again? This is because foreign investors are withdrawing a lot of money from the stock market. This type of trend has been seen earlier also. After that the market has declined. This time, due to retail inflation in America being higher than expected, interest rates on American bonds have increased. Due to this, Foreign Institutional Investors (FIIs) are continuously selling in the Indian market.
V.K., chief investment strategist at Geojit Financial Services. Vijayakumar says that till February 16 this month, FPIs have sold equity worth Rs 6,112 crore through the exchange. But purchases through ‘primary market and others’ have brought the net sales figure down to Rs 3,775 crore till February 16. He said, the total sales by FPIs since January 1 this year is Rs 29,519 crore.
Selling will continue if interest remains high
The selling trend by FPIs is likely to continue as long as interest on US bonds remains high. FPIs’ sustained buying of debt, which started earlier this year, also continues. FPIs bought debt worth Rs 16,559 crore till 16th February, taking the total debt purchases for 2024 to Rs 36,395 crore. He said this trend is also likely to continue.
FIIs are not selling aggressively
FPIs will continue selling in equities due to rising interest on US bonds. But due to continuous buying by domestic institutional investors, FIIs are not selling aggressively. It is controlling the market. However, the valuation of the Indian stock market is quite expensive. Due to this, many market experts are predicting a decline in the market.
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