FPI Investment: Foreign portfolio investors (FPIs) have pulled out Rs 5,900 crore from Indian stock markets in the first week of January amid rising cases of Kovid infection in many countries of the world and concerns about recession in the US. For the last few weeks, foreign portfolio investors (FPIs) have adopted a cautious approach towards Indian markets.
Rs 5872 crore withdrawn from Indian markets
Shrikant Chauhan, head of equity research (retail), Kotak Securities, said that apart from concerns about the growth of gross domestic product (GDP) going forward, high interest rates globally and the possibility of weak third quarter results of companies kept FPIs in the stance. There will be ups and downs. According to the depository data, during January 2 to 6, FPIs have withdrawn a net Rs 5,872 crore from the Indian stock markets.
FPI sold for the last 11 sessions
In fact, FPIs have remained sellers for the last 11 consecutive sessions. During this, he has sold shares worth Rs 14,300 crore. Earlier, FPIs had infused Rs 11,119 crore in shares in December and Rs 36,239 crore in November.
FPI pulled out Rs 1.21 lakh crore in the last year
Overall, in the last year i.e. 2022, FPI has withdrawn Rs 1.21 lakh crore from the Indian stock markets on a net basis. Aggressively raising interest rates by the US Federal Reserve and other central banks, fluctuating crude oil prices, high commodity prices and the Russia-Ukraine war led to FPI selling last year.
Why are FPIs keeping distance from the Indian market?
Himanshu Srivastava, associate director manager research at Morningstar India, said, “FPIs are staying away from emerging markets like India due to re-spreading of Kovid infection in some parts of the world and concerns of recession in the US.” In the first week of January, apart from shares, FPIs have also withdrawn Rs 1,240 crore from the loan or bond market. Apart from India, FPI flows have also been negative in the markets of Taiwan and Indonesia. However, their flows have been positive in the Philippines, South Korea and Thailand markets.
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