FPI has withdrawn Rs 4,200 crore from shares so far in September – Dainik Savera Times

New Delhi: After being net buyers in the Indian stock markets for six consecutive months, foreign portfolio investors (FPIs) have now become sellers. He has withdrawn Rs 4,200 crore from the stock markets so far in September. Nitasha Shankar, Chief Investment Advisor, Yes Securities (India) Limited, said that the process of withdrawal of foreign portfolio investors may continue in the coming one or two weeks.

“Besides, we also need to keep an eye on sharp fluctuations in the rupee, which may impact FPI inflows going forward,” he said. According to depository data, FPIs have withdrawn a net Rs 4,203 crore from shares in the month till September 8. Earlier, FPI investment in Indian shares had fallen to a four-month low of Rs 12,262 crore in August.

Earlier, FPIs were continuously buying Indian shares for the last six months from March to August. During this period, he had bought shares worth Rs 1.74 lakh crore. VK Vijayakumar, chief investment strategist of Geojit Financial Services, cited rising bond yields in America as the main reason for the change in trend in September. He said that apart from this, there has been a change in the attitude of FPIs due to the strength of the dollar index.

Himanshu Srivastava, associate director-manager research, Morningstar India, said, “The main reason for the withdrawal of foreign portfolio investors has been the uncertainty over the global interest rate scenario, especially in the US, and concerns about global economic growth. He said these concerns stem from broader global economic factors. These include rising crude oil prices and re-emergence of inflation risks.

Apart from shares, FPIs have invested Rs 643 crore in the debt or bond market during the period under review. With this, the total investment of FPI in shares so far this year has reached Rs 1.31 lakh crore and in the bond market has reached Rs 28,825 crore.