Foreign portfolio investors
After three months of continuous buying, foreign portfolio investors (FPIs) started selling in Indian markets. FPIs sold shares worth Rs 8545 crore during the last seven trading sessions. Whereas in August i.e. in the last four trading sessions, there has been a withdrawal of Rs 2034 crore. Know what is the reason for withdrawal. Read the full news.
After three months of continuous buying, foreign portfolio investors (FPIs) have now started selling in the Indian markets. During the last seven trading sessions, FPIs sold shares worth Rs 8,545 crore.
FPI withdraws more than 2 thousand crores
FPIs pulled out Rs 2,034 crore from equity markets in the four trading sessions in August. VK Vijayakumar, chief investment strategist at Geojit Financial Services, says that FPIs have withdrawn from Indian markets due to the rise in US 10-year bond yield (interest rate). Foreign investment in emerging markets may decrease if the interest rate of these bonds remains above 4 percent.
Selling may continue
According to Vijayakumar, with US bond yields remaining high, FPIs may continue selling or stay away from buying. According to data from the National Securities Depository Limited (NSDL), FPIs have invested a total of Rs 1,37,603 crore in the domestic equity markets in the last three months.
FPIs are buying in this area
FPIs are continuously buying in auto, capital goods and financial sector sectors. Apart from this, changing the investment strategy, FPIs have also started buying shares in the IT sector. Due to this, the stocks of IT companies have also registered strength in recent times.
According to Siddharth Khemka, head of retail research at Motilal Oswal, equity markets have seen some respite after three consecutive days of selling pressure. The main reason for this has been the rapid growth in the service activities of the country.