Only in the month of April, Foreign Portfolio Investors (FPIs) have withdrawn more than 10 thousand crore rupees from the Indian stock market. Brokerage firm UBS says that foreign investors can withdraw $ 3-4 billion (about 22-25 thousand crore rupees) from the Indian stock market in the short term. Its effect will definitely be seen on the stock market. In such a situation, investors need to be cautious.
Among Asian stock markets, the Indian market has performed the third strongest in the last 12 months. The Indian Sensex has given a spectacular return of around 60 per cent during this period. But the way Corona cases are increasing, keeping in mind that the corrections are being made in it. According to the report, FPIs will withdraw a total of $ 5 billion in the next few months. FPI has been a major contributor to the boom in the Indian market.
FPIs are buying from October to March
FPIs have been buying continuously since October and have been spending money in the market till March. In these six months, FPI has invested more than 2.10 lakh crores in Indian markets. Ever since the FPI started pouring money, the stock market has been hitting the boom. On September 30, 2020, the Sensex closed at the level of 38067. After that, as the FPI started coming, it started gaining momentum and it had reached the level of 52500 (the all time high of 52516 on 16 February). Since then it has declined and the market is going up and down.
Last financial year FPI raised a total of $ 39 billion
According to the PTI report, FPI infused a total of 39 billion rupees in the Indian stock market in the financial year 2020-21. FPI is known as the market breaker or maker of the Indian stock market. For the last two weeks, the movement of the stock market has been completely different. Regarding this, investors say that this has happened due to domestic investors. The program of vaccination is going to start on a big scale from May 1, but as the cases are increasing, the coming month is going to be quite critical. In such a situation, investors need to take decisions with no zeal.
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