The stock market is not falling just like that, foreign investors sold shares worth Rs 20,000 crore in just 5 days, know the reason
Indian The exodus of foreign investors from equity markets continued unabated last week. Foreign portfolio investors (FPIs) pulled out around Rs 20,000 crore in the last five trading sessions. FPIs sold off due to overvaluation of domestic stocks and shifting their allocation to China. In such a situation, FPIs have become net sellers in the equity market so far in 2024, and they have withdrawn a total of Rs 13,401 crore. FPI selling is expected to continue in the coming times.
Net sales of Rs 19,994 crore
If Q3 results and key indicators indicate an improvement in earnings, this scenario may change and FPIs may reduce selling. MojoPMS Chief Investment Officer Sunil Damania said that the newly elected President of America will assume office in January 2025. Therefore, the Indian market will be influenced by the Maharashtra Assembly election results, corporate earnings and retail investor sentiment in the near term. According to the data, FPIs have made a net sale of Rs 19,994 crore so far this month.
Shares worth Rs 94,017 crore sold in October
Earlier in October, they had made a net withdrawal of Rs 94,017 crore. This was the highest selling by FPI till date. In September 2024, foreign investors had invested Rs 57,724 crore. One of the major reasons for FPIs’ exit from Indian equities is their new attraction towards China. He believes that China’s valuation is attractive at this time. Himanshu Srivastava, joint director of Morningstar Investment Research India, said China has recently taken several measures to revive its slowing economy and attract foreign investment.
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