what general election Are foreign investors cautious or scared before the results are announced? This is because they are rapidly withdrawing their money from the Indian market. Let me tell you that amidst high valuations in the stock markets and general elections, foreign portfolio investors (FPIs) withdrew Rs 325 crore from the market in the first week of this month. According to depository data, FPIs have made a net withdrawal after investing Rs 35,000 crore in March and Rs 1,539 crore in February.
FPI can withdraw money further also
VK Vijayakumar, chief investment strategist at Geojit Financial Services, said the 10-year bond yield in the US has risen to 4.4 per cent, which will impact FPI investments in India in the near term. That means they can withdraw money from the Indian market. He said despite high US bond yields, FPI selling will remain limited as the Indian stock market is bullish and is continuously setting new records. Krishna Appala, senior research analyst at CapitalMind, said FPIs may return after the general elections or if there are initial signs of interest rate cut from the US Federal Reserve.
More than two lakh crores were invested in 2023-24
Let us tell you that due to the strong economic foundation of the country amidst the challenging global environment, foreign investors had invested more than Rs 2 lakh crore in the Indian stock market in the financial year 2023-24. According to market experts, foreign portfolio investors (FPIs) have made a net investment of about Rs 2.08 lakh crore in the Indian equity markets and Rs 1.2 lakh crore in the debt or bond markets. Overall they invested Rs 3.4 lakh crore in the capital market. This strong comeback was seen after the net withdrawal from stocks in the last two financial years. In the financial year 2022-23, FPI had withdrawn a net Rs 37,632 crore from the Indian stock market.
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