Foreign investors pulled out Rs 3,825 crore from Indian markets, know what is the reason
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New Delhi: Foreign portfolio investors (FPIs) have remained net sellers in the Indian markets so far in October. They have withdrawn Rs 3,825 crore from the Indian markets in October. Due to this, in the last two months, FPIs had made great investments in the debt or bond market. He had put Rs 13,363 crore in the bond market in September and Rs 14,376.2 crore in August.
According to depository data, foreign portfolio investors have so far pulled out Rs 1,494 crore from the bond market in October. Similarly, he has withdrawn Rs 2,331 crore from the shares. In this way, during October 1 to 22, they have withdrawn a net Rs 3,825 crore from the Indian markets.
FPI sells shares of software companies
VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “FPIs sold shares worth Rs 5,406 crore in software companies in the first fortnight of October. However, the second quarter results of software companies have been good. So it is definitely a matter of profit booking. FPIs have been buyers in financial services companies.
Himanshu Srivastava, Associate Director (Managerial Research), Morningstar India said, “FPIs are standing on the edge of the market and they are following a ‘watch and wait’ policy. In the meantime, they are reaping profits.” There remains concern among FPIs regarding the lack of easy liquidity after the US Federal Reserve signaled a sooner-than-expected rate hike.
Also, concerns like rising oil prices, US bond yields and challenges to the Chinese economy are on his radar, thus putting him on tenterhooks and preventing him from making substantial investments in Indian equities.
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