FPIs are continuously continuously continuously from Indian equity markets, and they have withdrawn Rs 64,156 crore so far this month. This is happening due to the devaluation of the rupee, an increase in American bond yields and weak quarterly results. Depository data shows that foreign portfolio investors (FPIs) invested Rs 15,446 crore in December.
Joint Director of Morningstar Investment Advisors India – Research Manager Himanshu Srivastava said, “There is a lot of pressure on foreign investors due to the steady decline in Indian rupee, which is withdrawing money from Indian equity markets.” He said that in addition, high evaluation of Indian stock markets is cautious to investors despite the recent decline, relatively low -quarterly results and comprehensive economic adversities.
In addition, the unexpected policies of Donald Trump have also motivated investors to take careful steps. In such a situation, investors are forced to stay away from the path of risky investment.
According to the data, FPI has sold shares worth Rs 64,156 crore from Indian equity so far this month (till January 24). The FPI sold on all days except January 2 this month.
VK Vijaykumar, the main investment strategist at Geojit Financial Services, said, “The continuous strength of the dollar and the increase in American bond rewards have been the main factor to promote FII sales. As long as the dollar index will remain above 108 and the 10 -year -old American bonds are above 4.5 percent, sales are expected to continue. ” The financial sector is especially suffering from the selling of FPI. On the other hand, some purchases were seen in the IT area.