Mumbai: Foreign investors have sold shares worth Rs 31,430 crore so far this month on the Indian stock market in response to the US Federal Reserve raising interest rates.
Various countries have issued announcements to encourage the industry in the wake of the massive damage caused by the corona spread. As a result, Indian stock markets have been bullish for the past 10 months. The Sensex crossed the 60,000 mark at one point on the Mumbai Stock Exchange.
In this case, Russia is attacking Ukraine. This environment has posed economic threats around the world. Thus the price of gold and crude oil is rising sharply.
Rise in interest
The US Federal Reserve has raised interest rates to control inflation. Bank of England has also raised interest rates. Thus the rate of inflation around the world is rising.
In addition, the increase in corona infections in China and the implementation of lockdown restrictions have affected the supply chain and led to a sharp rise in prices. As a result, stock markets around the world are plummeting.
Investment companies are selling shares out of the Indian stock market. Foreign investors have sold shares in the Indian stock market and raised Rs 31,430 crore so far this month.
Fear … Confusion …
As a result, the value of the rupee taken out of the portfolios of foreign portfolio investors (FPIs) so far in 2022 has reached Rs 1.98 lakh crore. Foreign investment firms continue to exit Indian stocks from October 2021 until June.
VK Vijayakumar, a stock market expert from Geojit, said:
The US Federal Reserve was forced to raise interest rates by 75 basis points as inflation continued to rise in the United States. This is what global investors fear. Are reacting to the growing fears of a global recession. Thus the stock markets are also in turmoil.
The strengthening of the dollar in the United States and the rise in bond yields are the main reason for foreign investors to exit the market. Interest rates are rising globally as central banks such as the US Federal Reserve, the Bank of England and the Swiss central bank raise rates. Thus the money moves from equity to securities. “