During the last one year, foreign portfolio investors (FPIs) have withdrawn about $ 8 billion from India, which is the highest since 2009.
FPI: Foreign portfolio investors (FPIs) have withdrawn Rs 18,856 crore from the Indian markets so far in the month of February. This is the fifth consecutive month that FPIs have pulled money out of the Indian markets. The increased tension in Russia-Ukraine and the possibility of a rise in interest rates in the US is believed to be the reason for FPIs withdrawing money from the Indian markets. During the last one year, foreign portfolio investors have withdrawn about $ 8 billion from India, which is the highest since 2009.
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According to depository data, during February 1 to 18, FPIs have withdrawn Rs 15,342 crore from equities and Rs 3,629 crore from debt or bond markets. During this, he has invested Rs 115 crore in hybrid instruments. In this way his net withdrawal has been Rs 18,856 crore.
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What do experts say
- Himanshu Srivastava, Associate Director-Manager Research, Morningstar India, said, “FPIs have been exiting Indian stocks in recent times amid geo-political tensions and the possibility of a hike in interest rates by the Federal Reserve. Their selling has also intensified after the US central bank indicated a hike in interest rates.
- Shrikant Chauhan, Head of Equity Research (Retail), Kotak Securities said that rising tensions between the US and Russia over Ukraine have turned investors towards safer investment options like bonds and gold. He said that in the last one year, FPIs have pulled out about $ 8 billion from Indian stocks. This is the highest figure since 2009.
(Input-PTI)
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