Foreign portfolio investors poured money into the market between January-March this year. Money was withdrawn from the market in April and May and was reintroduced in June. 4515 crores have been withdrawn so far due to profit booking in July.
At the all time high of the market, the FPI has opted to cut profits.
FPI in July: Foreign portfolio investors (FPIs) have pulled out Rs 4,515 crore from the Indian stock markets in the first fortnight of July. During this, the attitude of FPI towards the Indian market has been cautious. Himanshu Srivastava, Associate Director (Managerial Research), Morningstore India said that the market is currently at its all-time low. In such a situation, the FPI has chosen to cut profits.
They are not investing much even because of the high valuation. Apart from this, they are also cautious about the risks of a possible third wave of the epidemic. He said that the continued strength in the dollar and the prospect of increasing yield on bonds in the US is not good for capital inflows in emerging markets like India, but there is no need to worry about it immediately. According to depository data, foreign investors withdrew Rs 4,515 crore from shares during July 1 to 16. During this, he also put Rs 3,033 crore in the bond market. During this his net withdrawal stood at Rs 1,482 crore.
FPI had put in 13269 crores in June
In June, FPIs poured Rs 13,269 crore into the Indian markets. VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said FPI activities have been “very volatile” so far in 2021.
Massive investments were made in the January-March quarter
In the first three months of this year i.e. in January, February and March, FPIs had invested extensively in the Indian market. Foreign portfolio investors sold in April and May after the second wave of Corona appeared. Once again in June he made a comeback and invested here. In the month of July, the market has reached its all-time high, due to which they are also booking profits and avoiding investing at such a high price. On the other hand, a third wave is also being feared.
The turmoil is expected to continue before the Federal decision
Talking about other Asian markets, foreign investors have pulled out $151 million, $ 2043 million, $373 million and $282 million from the markets of Philippines, South Korea, Taiwan and Thailand. $59 million has been invested in the Indonesian market. Before the announcement of the monetary policy of the US Federal Reserve, the volatility in the Indian markets may continue.
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