FPIs take out Rs 14800 crore from equities in June first week: Foreign investors i.e. FPIs sold shares worth about Rs 14,800 crore in the first week of this month. Foreign investors did this influenced by the results of India’s general elections and the attractive valuation of Chinese shares. On the other hand, FPIs invested more than Rs 4,000 crore in the bond market i.e. debt market in the first week of June.
Due to uncertainty over election results, changes in India’s tax treaty with Mauritius and continuous rise in US bond yields, foreign investors had made net withdrawals of Rs 25,586 crore in May and more than Rs 8,700 crore in April. Prior to that, FPIs had made net investments of Rs 35,098 crore in March and Rs 1,539 crore in February. They had withdrawn Rs 25,743 crore in January.
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Experts said that from a medium to long term perspective, foreign directors will keep an eye on the direction of interest rates in India. According to the data, FPIs made a net withdrawal of Rs 14,794 crore this month till June 7. The results of the general elections in India significantly affected the flow of foreign investors in the Indian equity markets in June.
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VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said that FPIs’ disappointment with Chinese stocks seems to be ending and investment in Chinese stocks listed on the Hong Kong exchange is increasing. He said that the valuation of Chinese stocks has become very attractive.