FPIs playing wonderfully with the stock market, after investing in July-August, withdrew so many thousand crores in September

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Indian Stock market Foreign investors are playing a game of eye-witness with them. According to the data received from the stock market, after nine months of investment in July and August, after withdrawing a large amount again in September. Foreign investors again insisted on selling in September and pulled out more than Rs 7,600 crore from the Indian stock markets. With this, Foreign Portfolio Investors (FPIs) have withdrawn a total of Rs 1.68 lakh crore from Indian markets so far in the calendar year 2022. Experts believe that the volatility in the activities of FPIs is likely to continue in the coming months as well.

Apart from global, domestic reasons are also responsible.

Apart from global factors, he has attributed this to domestic factors as well. Shrikant Chauhan, Head of Equity Research (Retail), Kotak Securities said, “The British government’s fiscal policies in the midst of current global inflation have had a profound impact on the global money market and equity markets have also become risk averse.” On the domestic front, apart from a partial decline in the gross domestic product (GDP) estimate, there are fuel-related concerns as well, he said. According to depository data, FPIs have net sold shares worth Rs 7,624 crore in September. Earlier in August, he had net purchases worth Rs 51,000 crore in the Indian market and about Rs 5,000 crore in July. However, for nine consecutive months before that, FPIs remained net sellers in the Indian markets.

Withdrawals during October 2021 to June 2022

From October 2021 to June 2022, FPIs only made withdrawals from the Indian markets. As far as September 2022 is concerned, FPIs started this month in a positive way. “Subsequently, the depreciating rupee and rising bond yields in the US and the Federal Reserve’s interest rate, led to pessimistic sentiment among foreign investors,” said Himanshu Srivastava, co-director-research manager, Morningstar India. The depreciation of the rupee also encouraged FPI outflows. Alok Jain, Founder and Smallcase Manager, Weekend Investing, said, “Investors have started turning to its security due to the strengthening of the dollar in September. There may be a tendency to exit and return later.”

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