2024-05-12 15:00:20
New Delhi: Foreign investors are continuously selling in the Indian stock market. Its effect is visible on the market. There has been a huge decline in the market last week. Investors have suffered losses due to the fall in many stocks. Foreign portfolio investors (FPIs) have withdrawn more than Rs 17,000 crore from Indian stock markets in the first 10 days of the current month of May. Foreign investors are pulling out of Indian stock markets due to high valuations and reaping profits amid uncertainty over the general election results. Earlier last April, due to changes in India’s tax treaty with Mauritius and increase in bond yields in the US, FPIs had made a net withdrawal of Rs 8,700 crore from stocks. In this way, in the first 10 days of the current month, FPIs have withdrawn more than April. Earlier, FPIs had made a net investment of Rs 35,098 crore in shares in March and Rs 1,539 crore in February. It is believed that after the general elections, due to the strong financial results of Indian companies, FPIs will increase investment in the Indian market.Multibagger Stock: Is it a share or a philosopher’s stone? There is a rush to buy this ₹1 stock, it is giving huge returns
can make big investment
Tradejini Chief Operating Officer (COO) Trivesh D said that FPIs can adopt a cautious approach till the election results are clear, but in case of favorable results and political stability, they can make big investments in Indian markets. According to depository data, foreign portfolio investors have pulled out Rs 17,083 crore from stocks so far this month (till May 10). “There are several reasons for the aggressive selling by FPIs,” said Himanshu Srivastava, associate director-manager research at Morningstar Investment Research India. FPIs are being cautious due to uncertainty regarding the results of the general elections. They are hesitant in coming to the market before the election results.
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so many purchases so far
Apart from shares, FPIs have also withdrawn Rs 1,602 crore from the debt or bond market during the period under review. Earlier, FPIs had invested Rs 13,602 crore in the bond market in March, Rs 22,419 crore in February and Rs 19,836 crore in January. Overall, so far in 2024, FPIs have withdrawn Rs 14,860 crore from shares. However, they have infused Rs 14,307 crore into the debt or bond market.
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