Mumbai: Foreign Portfolio Investors (FPIs) have pulled out Rs 44,396 crore from Indian equities so far this month (till January 17).FPIs have been sellers on all days this month except January 2. FPIs became net sellers of Indian equities due to the strength of the dollar, rising bond yields in the US, and expectations of a weak earnings season. This came following an investment of Rs 15,446 crore in the month of December.
‘The continued depreciation in Indian rupee is exerting significant pressure on foreign investors leading them to pull the money out of the Indian equity markets,’ Himanshu Srivastava, Associate Director – Manager Research, Morningstar Investment Advisers India, said.
FPIs have been sellers in the debt market, too. They withdrew Rs 4,848 crore from debt general limit and Rs 6,176 crore debt voluntary retention route.
Also Read: Army soldier martyred in encounter with terrorists in Jammu and Kashmir
The overall trend indicates a cautious approach by foreign investors, who scaled back investments in Indian equities significantly in 2024, with net inflows of just Rs 427 crore. This contrasts sharply with the extraordinary Rs 1.71 lakh crore net inflows in 2023. In comparison, 2022 saw a net outflow of Rs 1.21 lakh crore.
Foreign institutional investors (FII) or Foreign portfolio investors (FPI) are those who invest in the financial assets of a country while not being part of it. On the other hand, Domestic Institutional Investors (DII) are those who invest in the country they are living in. Both types of investors can impact the economy’s net investment flows.
Post Your Comments