According to depository data, FPIs have withdrawn Rs 13,470 crore from equities between December 1 and 17.
FPI Investment in December: Foreign portfolio investors (FPIs) have withdrawn Rs 17,696 crore from the Indian markets so far in the month of December. FPIs have withdrawn amid the threat of the new variant Omicron of the corona virus and the US Federal Reserve stopping bond purchases earlier than expected. According to the data, FPIs pulled out Rs 13,470 crore from equities, Rs 4,066 crore from debt segment and Rs 160 crore from hybrid instruments between December 1-17. FPIs had net sales of Rs 2,521 crore in the Indian markets in November.
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What do experts say
Himanshu Srivastava, Associate Director – Research, Morningstar India, said that there is uncertainty on both the global and domestic front. He said that due to the Omicron variant of the corona virus, there is concern and it has affected global growth. He further said that apart from this, the economic growth has also been relatively slow and India’s income has not increased much. If the situation worsens, foreign investors can withdraw their investments from emerging markets like India.
Coal Import in October: India’s coal import decreased, despite the increase in demand in the power sector, hence the decline
VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said since banking has the largest FPI holding, it is bearing the brunt of FPI sales. He added that frequent FPI sell-offs have made high quality banking stocks attractive from a valuation perspective.
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