Now it seems clear that the stock market has been handed over only to domestic investors. Because indifference of foreign investors was seen throughout October. Foreign investors have sold more than Rs 94 thousand crore in the month of October. In the history of the stock market, such a huge sale has never been done by foreign investors. In March 2020, foreign investors had sold more than Rs 61 thousand crore. Let us also tell you what kind of figures have been seen on NSDL.
Foreign investors withdrew Rs 94 thousand crores
Foreign portfolio investors (FPIs) have withdrawn Rs 94,000 crore (about US $ 11.2 billion) from the Indian stock market in October.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 withdrawals. Due to high valuations in domestic markets and attractive valuations of Chinese stocks, FPIs remain sellers in the Indian market. Earlier, foreign portfolio investors had withdrawn Rs 61,973 crore from shares in March 2020. Before this latest withdrawal, FPIs had infused Rs 57,724 crore into shares in September. This was the nine-month high level of his investment. After withdrawing Rs 34,252 crore in April-May, FPIs were continuously buying since June.
Withdrawal from bond market also
According to depository data, FPIs made a net withdrawal of Rs 94,017 crore in October. FPIs are buying only one day in the entire month. In this way, his total investment in shares has come down to Rs 6,593 crore in 2024. Due to selling by FPIs, major indices have fallen far below their peak levels. According to the data, FPIs have withdrawn Rs 4,406 crore from bonds through the general limit and invested Rs 100 crore through the voluntary retention route (VRR) during the period under review.
What are the experts saying?
Himanshu Srivastava, Associate Director, Manager Research, Morningstar Investment Research India, said that in the future, global developments like geopolitical developments, interest rate fluctuations, progress in the Chinese economy and the outcome of the US presidential election will have a bearing on shaping foreign investment in Indian stocks. Will play an important role. He said that on the domestic front, FPI will keep an eye on the inflation trend, quarterly results of companies and festive demand data.
