Suspense Crime Sach Ka Dam
Foreign portfolio investors (FPIs) have broken their record after four years. FPIs have withdrawn Rs 94,000 crore (about US $ 11.2 billion) from the Indian stock market in October. Thus, this has been the worst month in terms of FPI withdrawal. Earlier, foreign portfolio investors had withdrawn Rs 61,973 crore from shares in March 2020. Due to high valuations in domestic markets and attractive valuations of Chinese shares, FPIs remain sellers in the Indian market. Before this latest withdrawal, FPIs had invested Rs 57,724 crore in shares in September. This was a nine-month high in their investment. After withdrawing Rs 34,252 crore in April-May, FPIs have been continuous buyers since June.
Because of this, investors are withdrawing money from the stock market.
Himanshu Srivastava, Associate Director, Manager Research, Morningstar Investment Research India, said that future geopolitical developments, fluctuations in interest rates, progress in the Chinese economy, and global developments such as the results of the US presidential election will play an important role in shaping foreign investment in Indian stocks. He said that on the domestic front, FPIs will keep an eye on the inflation trend, quarterly results of companies, and festive demand data. According to depository data, FPIs made a net withdrawal of Rs 94,017 crore in October. FPIs were buyers only on one day in the entire month. Thus, their total investment in stocks in 2024 has come down to Rs 6,593 crore.
Big fall in Sensex and Nifty due to selling
The major indices have fallen nearly eight percent from their peak levels due to FPI selling. According to the data, FPIs have withdrawn Rs 4,406 crore from bonds through the general limit during the period under review and invested Rs 100 crore through the voluntary retention route (VRR).
