Foreign Portfolio Investors (FPIs) have withdrawn Rs 7,013 crore from Indian markets so far this month. FPI has reaped profits in the Indian markets amid increasing bond yields. According to the depository data, from March 1 to 12, FPI has withdrawn Rs 531 crore from the shares and Rs 6,482 crore from the bond market. In this way, his net withdrawal has been Rs 7,013 crore.
In contrast to this stance, FPI had infused Rs 23,663 crore in Indian markets in February and Rs 14,649 crore in January. Research director Himanshu Srivastava, Associate Director-Manager, Morningstar India, said, “The flow in shares has declined in recent times. The main reason for this is profit booking between the market being at a high level. VK Vijayakumar, chief investment strategist at Geojit Financial Services, said, “The dollar index has risen above 92 and the yields on US 10-year bonds have risen, affecting the sentiment. This is the main reason for profit booking.
FPI at five-year high
Harsh Jain, Chief Operating Officer (COO) of GROWW said, “FPI’s ownership is at a five-year high, especially in the shares of large companies, especially the Nifty 50”. This indicates how they are expecting the Indian economy to perform in the near future.
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Huge market fluctuations
The stock market of the country traded amid heavy fluctuations this week, but the major sensory indices recorded an increase compared to the previous week. During the week, three sessions out of the four trading sessions gained momentum, while in the last session there was heavy selling pressure. The 30-share Sensex Sensex based on the Bombay Stock Exchange (BSE) closed at 50,792.08, up 386.76 points or 0.77 per cent over the previous week. At the same time, the Nifty, a sensitive index based on 50 stocks of the National Stock Exchange (NSE), gained 92.85 points, or 0.62 per cent, to close at 15,030.95 over the previous week.