Mumbai, September 28 (IANS). Foreign institutional investors (FIIs) withdrew Rs 16,422 crore from equity last week. The reason for this is to make policy changes on H-1B visas from the US. This information was given by the analyst on Sunday.
Two important announcements were made by US President Donald Trump last week, including a fee of $ 1,00,000 for new H-1B visa applications and 100 percent tariffs on branded drugs.
The benchmark indices saw the fastest weekly decline in the benchmark indices due to continuous withdrawal of foreign investors.
The analyst reported that the reason for this was the global uncertainty and a poor performance of some sectors, with FPI selling.
Dr. VK Vijaykumar, the main investment strategist of Geojit Financial Services, said that foreign portfolio investors have withdrawn $ 21 billion from India in the last one year, which is the largest withdrawal in emerging markets in this period.
“This FPI outflow has also played an important role in the rupee’s decline of 3.5 percent against the dollar,” he said, high evaluation and slow income growth in India is the main reasons for the withdrawal of FPIs as compared to other markets. “
In the first three months of 2025, he was an FPI seller and he became a buyer in the next three months. In July, August and September, he has become a seller again so far.
He further stated that contrary to the value of the currencies of other emerging markets, the depreciation of the Indian rupee has further increased the pressure.
The analyst said that record automobile booking, low GST rates and cheaper automotive loans are promoting improvement in market.
He said that this will increase the income better and there is no possibility of further decline in the rupee.
Vijaykumar said, “It would be right to assume that we are close to the lowest level of FPI withdrawal.”
He further said that the income growth in India is expected to grow from the third quarter of FY 2026, which will gain momentum in FY 2027.
-IANS
ABS/