Foreign investors pulled out Rs 35,000 crore from the Indian stock market, know what is the reason behind it

The process of withdrawal of Foreign Portfolio Investors (FPIs) from the Indian stock markets continues.

The process of withdrawal of Foreign Portfolio Investors (FPIs) from the Indian stock markets continues. FPIs have pulled out more than Rs 35,000 crore from Indian markets so far this month.

Indian stock exchanges (Share Market) from foreign portfolio investors (FPI) The process of evacuation continues. FPIs have pulled out more than Rs 35,000 crore from Indian markets so far this month. US central bank (US Central Bank) interest rates aggressively by (Interest Rates) FPIs continue to be sellers in the Indian market due to the rise in prices and the strengthening of the dollar. In this way, FPIs have withdrawn Rs 1.65 lakh crore from Indian markets so far in 2022. Shrikant Chauhan, Head of Equity Research (Retail), Kotak Securities said that FPIs will continue to remain volatile going forward due to higher crude oil prices, inflation, tighter monetary stance and other factors.

VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said since the US market is weak and the dollar is strengthening, FPI sell-off will continue.

Continued selling

Foreign investors have been net sellers in the Indian market for seven consecutive months till April 2022. During this, he has made a net withdrawal of more than Rs 1.65 lakh crore. FPIs, however, had invested Rs 7,707 crore in shares in the first week of April after selling for six consecutive months. But, after that, he once again became a seller in the week of less trading session from April 11 to 13. The same trend continues in the coming weeks as well.

According to depository data, FPIs have withdrawn Rs 35,137 crore from Indian equities between May 2 and 20.

Morningstar India associate director-manager research Himanshu Srivastava said foreign investors are worried about the possibility of a more aggressive rate hike by the US central bank going forward. The Federal Reserve has raised interest rates twice this year. Apart from equities, FPIs have pulled out a net Rs 6,133 crore from the debt or bond market during the period under review. Apart from India, FPIs have also withdrawn from other emerging markets such as Taiwan, South Korea, Indonesia and the Philippines.

Let us tell you that there was a lot of pressure on the stock market for some time, but this week there has been a huge boom in the market for two days. There has been a bumper jump of 2.54 percent in the market on one day and 2.91 percent on the second day.

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