FPIs take out Rs 44396 crore from equities in January so far: Amid the strengthening of the dollar, increase in bond yields in America and fears of weak quarterly results of companies, foreign investors i.e. FPIs have sold shares worth Rs 44,396 crore so far in January. This information has been obtained from depository data. Apart from shares, FPIs have also withdrawn from the bond market. During this period, he has withdrawn Rs 4,848 crore from the bond market under the Debt General Limit and Rs 6,176 crore through the voluntary retention route.
Foreign investors have withdrawn Rs 44,396 crore from Indian shares this month till January 17. FPIs have been selling on all days of this month except January 2. Earlier in December, FPIs had invested Rs 15,446 crore in the Indian stock market. Due to various kinds of obstacles on the domestic and global front, there has been a change in the attitude of foreign investors.
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Himanshu Srivastava, associate director-manager research at Morningstar Investment Advisors India, said, “The continuous decline in the Indian rupee has put a lot of pressure on foreign investors. This is the reason why they are withdrawing their investments from the Indian market.” He said that despite the recent fall, high valuation of Indian shares, possibility of weak quarterly results, uncertainty about the pace of economic growth are affecting investors. Is.
VK Vijayakumar, chief investment strategist, Geojit Financial Services, said, “The main reasons for the continuous selling by FPIs are the strengthening of the dollar and the rise in bond yields in the US.” The dollar index is above 109 and the 10-year US bond yield is above 4.6 percent. In such a situation, it is logical for FPIs to sell in emerging markets, especially the most expensive emerging market India. Since the bond yield in America remains attractive, FPIs are also selling in the debt market or bond market. He has withdrawn Rs 4,848 crore under the general limit in the bond market and Rs 6,176 crore through the voluntary retention route.
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Overall, this trend reflects the cautious attitude of foreign investors, who made a net investment of only Rs 427 crore in Indian stocks in 2024. Earlier in 2023, FPI investment in Indian shares was Rs 1.71 lakh crore. FPIs had withdrawn Rs 1.21 lakh crore from the Indian market amid aggressive rate hike by global central banks in 2022.
