foreign investors This time, you are looking in a different mood. Foreign investors are continuously selling, rejecting all speculation. Let us tell you that once again foreign portfolio investors (FPI) have withdrawn Rs 34,574 crore from Indian stock markets in February. In this way, the total withdrawal of FPI has reached Rs 1.12 lakh crore in the first two months of 2025. FPIs remain continuously selling amidst concerns about global trade and companies’ income. The stock market has fallen in its face due to large selling from foreign investors. Last week, the 30 -share Sensex of BSE came down 2,112.96 points or 2.80 percent. At the same time, the Nifty of the National Stock Exchange is 671.2 points or 2.94 percent.
So FPI is continuously withdrawing money
Vipul Bhover, Senior Director (Listed Investment), Waterfield Advisors, said, “FPIs are continuously withdrawing due to concerns about high evaluation of Indian stocks and increase in corporate income.” According to depository data, foreign portfolio investors have withdrawn Rs 34,574 crore from Indian shares in February. Earlier in January, FPI sold shares worth Rs 78,027 crore. In this way, in the first two months of 2025, FPIs have withdrawn Rs 1,12,601 crore. Bhovwar said that the main reason for the recent market’s recent selling is an increase in bond returns in the US, strengthening US dollars and global economic uncertainty. This is leading the attention of investors to American assets. He said that in the third quarter of the current financial year, the results of companies have been weak which reflects the atmosphere of uncertainty. He said that this problem has increased further due to decline in commodity prices and reduction in consumer spending.
China shares are investing money
VK Vijaykumar, the main investment strategist at Jiojit Financial Services, said that FPIs are selling due to high evaluation in India. They are investing their money in Chinese shares, where the evaluation is low. He said, “But in this process, they are selling in the best performing areas with attractive evaluation.” An important contradiction in the selling of FPI is that they are selling huge amounts in financial services, while this area is performing well and its evaluation is attractive. Apart from this, they are also withdrawing money from the loan or bond market. During the period under review, he has withdrawn Rs 8,932 crore from the bond market and Rs 2,666 crore from the voluntary retention route.
FPI investment decreased significantly
The FPI’s investment in the Indian market in 2024 was quite reduced to Rs 427 crore. Earlier in 2023, he had invested Rs 1.71 lakh crore in the Indian market, while in 2022, the global central banks had withdrawn Rs 1.21 lakh crore amid aggressive increase in interest rates.
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