Foreign portfolio investors (FPIs) have pulled out Rs 44,396 crore from the Indian stock market so far in January. The reasons for this are the strength of the dollar, increase in bond yields in America and fear of weak quarterly results of companies. This information has been obtained from depository data. Earlier in December 2024, FPI had injected Rs 15,446 crore into the Indian stock market. Due to various obstacles on the domestic and global front, there has been a change in the attitude of foreign investors.
According to news agency PTI, Himanshu Srivastava, Associate Director-Manager Research, Morningstar Investment Advisors India, said, “The continuous decline in the Indian rupee has put a lot of pressure on foreign investors. This is the reason why they are withdrawing their investments from the Indian market.” He said that despite the recent fall, high valuation of Indian shares, fear of weak quarterly results, uncertainty about the pace of economic growth are also affecting investors. Has been.
What is the bond yield in America?
According to the data, foreign portfolio investors have pulled out a net Rs 44,396 crore from Indian stocks this month till January 17. FPIs have been sellers on all days of this month except January 2. VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, says, “The main reason for the continuous selling by FPIs is the strengthening of the dollar and the rise in bond yields in America.” The dollar index is above 109 and the yield on 10-year US bonds is above 4.6 percent. In such a situation, it is logical for FPIs to sell in emerging markets, especially the most expensive emerging market India.
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Selling in debt market also
Since bond yields in America remain attractive, FPIs are also selling in the debt or bond markets. He has withdrawn Rs 4,848 crore from the bond market under the general limit and Rs 6,176 crore through the voluntary retention route.