According to data received from depositors, FPIs have pulled out Rs 14,721 crore from equities, Rs 2,808 crore from debt segment and Rs 9 crore from hybrid instruments in just three trading days of this month.
FPI: Foreign portfolio investors (FPIs) have withdrawn Rs 17,537 crore from the Indian stock markets in just three trading days of March. FPI outflows have increased due to Ukraine crisis and rising crude oil prices. According to data received from depositors, FPIs have pulled out Rs 14,721 crore from equities, Rs 2,808 crore from debt segment and Rs 9 crore from hybrid instruments in just three trading days of this month. In this way, during March 2 to 4, a total of Rs 17,537 crore has been withdrawn from the Indian markets by foreign investors.
What is the opinion of experts regarding the delay in LIC IPO, will the government lag behind the disinvestment target by a huge margin
What do experts say
- VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “The uncertainty arising out of the war between Ukraine and Russia and the rise in crude oil prices has affected the market sentiment.” Apart from this, in view of the weakening position of the rupee against the FPI dollar, the debt segment has also remained a seller.
- Himanshu Srivastava, Resort Manager and Associate Director, Morningstar India, says that the creation of geo-political tension on this scale is not good from the point of view of foreign exchange inflows for an emerging economy like India.
- He said the high valuations of the Indian equity markets coupled with the earnings risk associated with corporate earnings and the slowing pace of economic growth have acted to prevent foreign investors from investing freely in the Indian stock market.
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FPI flows likely to remain volatile in coming days
Shrikant Chauhan, Head Equity Research (Retail), Kotak Securities Limited said, “FPI inflows in emerging markets other than India were positive in the month of February. FPI investment of $ 1220 million came in Indonesia, $ 141 million in the Philippines, $ 418 million in South Korea and $ 1931 million in Thailand. He said that FPI flows are expected to remain volatile in the coming times due to Russia’s attack on Ukraine and its resulting sanctions, as well as rising inflation and increasing policy interest rate by the Federal Reserve.
(Input-PTI)
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