Finance Minister Nirmala Sitharaman has tried to remove the concerns related to the selling in the Indian stock market by Foreign Institutional Investors (FIIS). In this connection, he talked about the reasons for profit booking. Sitharaman said that investors are getting better returns in the Indian economy and that is why investment profit booking is being done.
He said, foreign institutional investors also come out when they are in a position to book profit. There is an atmosphere in the Indian economy and the Indian stock market today, where investment is getting much better returns and due to this profit booking is being done. From October last year, Foreign Institutional Investors have sold more than Rs 1.56 lakh crore. FIIS has withdrawn about Rs 1 lakh crore in just 2025, due to which there has been a sharp decline in indices. Also, investors’ properties have also suffered significant damage.
Finance Secretary Tuheen Kant Pandey said that foreign institutional investors are not shifting from one emerging market to another emerging market. He also said that in the present time with global uncertainty, investments are desired to return to their original country and most of the country’s natives of investment are America. He also said that this turmoil is temporary and the Indian market is capable of withstanding such fluctuations.
Ajay Seth, secretary of the Department of Economic Affairs, denied the possibility of any kind of government intervention due to strong selling in the stock market. He said that such a step can be taken only when there is any proof of the market failure and the situation does not seem to be seen at the moment. Seth said that the stock markets are not only run by the policies of the government, while foreign investors turn to big markets at the time of uncertainty.