FPIs incessant selling continues to withdraw Rs 64000 crore from equities in January 2025 so far: The indifference of foreign investors i.e. FPI from Indian stock markets continues. So far in January 2025, he has withdrawn Rs 64,156 crore from the Indian stock markets. This is happening due to devaluation of rupee, increase in US bond yields and weak quarterly results.
According to the data, FPIs have sold shares worth Rs 64,156 crore from Indian equities till January 24 this month. FPIs sold on all days except January 2 this month. Earlier in December 2024, FPI had invested Rs 15,446 crore in the Indian stock market.
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Himanshu Srivastava, Joint Director – Research Manager, Morningstar Investment Advisors India, said, “There is a lot of pressure on foreign investors due to the continuous decline in the Indian rupee, due to which they are withdrawing money from the Indian equity markets.” The high valuations of the Indian stock markets despite the fall in Q4, relatively weak quarterly results and macroeconomic headwinds are making investors cautious. Apart from this, the unexpected policies of Donald Trump have also prompted investors to act with caution. In such a situation, investors are forced to stay away from risky investments.
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VK Vijayakumar, chief investment strategist, Geojit Financial Services, said, “Continued strengthening of the dollar and rise in US bond yields have been the main factors driving FII selling. As long as the dollar index remains above 108 and the 10-year US bond yield remains above 4.5 percent, selling is expected to continue. The financial sector is especially suffering due to selling by FPIs. On the other hand, some buying was seen in the IT sector.
