Modi at the centre The return of the government has led to a great boom in the Indian stock market. The stock market saw a great jump in the three trading sessions of the last week. However, apart from this, foreign investors are still sellers. After all, what is the reason that foreign investors are constantly withdrawing money? Let us tell you that foreign investors withdrew about Rs 14,800 crore from domestic shares in the first week of this month. That is, such a huge sell-off has been done in just 6 days.
Because of this, people are withdrawing money from India
Market experts say that influenced by the results of India’s general elections and the attractive valuation of Chinese shares, foreign investors are withdrawing money from the Indian market. Due to the uncertainty of election results, changes in India’s tax treaty with Mauritius and the continuous rise in US bond yields, foreign portfolio investors (FPIs) made a net withdrawal of Rs 25,586 crore in May and more than Rs 8,700 crore in April. Depository data shows that earlier, FPIs had made a net investment of Rs 35,098 crore in March and Rs 1,539 crore in February. They had withdrawn Rs 25,743 crore in January.
The pessimism over sugar stocks is over
VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said that FPIs’ disappointment with Chinese stocks seems to be ending and investment in Chinese stocks listed on the Hong Kong exchange is increasing. He said that the valuation of Chinese stocks has become very attractive. On the other hand, FPIs invested more than Rs 4,000 crore in the debt market.
Experts said that from a medium to long term perspective, foreign directors will keep an eye on the direction of interest rates in India. According to the data, FPIs made a net withdrawal of Rs 14,794 crore this month (till June 7). The results of the general elections in India significantly affected the flow of foreign investors in the Indian equity markets in June.
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