New Delhi : Foreign portfolio investors (FPIs) pulled out Rs 5,900 crore from Indian stock markets in the first week of January amid rising cases of Kovid infection in many countries and concerns of recession in the US. For the last few weeks, Foreign Portfolio Investors (FPIs) have adopted a cautious approach towards Indian markets.
Shrikant Chauhan, head of equity research (retail), Kotak Securities, said apart from concerns on going ahead gross domestic product (GDP) growth, high interest rates globally and the possibility of weak third quarter corporate results weighed on FPIs. There will be ups and downs. According to the depositories data, during January 2 to 6, FPIs have pulled out a net Rs 5,872 crore from the Indian stock markets.
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In fact, FPIs have remained sellers for the last 11 consecutive sessions. During this, he has sold shares worth Rs 14,300 crore. Earlier, FPIs had infused Rs 11,119 crore in stocks in December and Rs 36,239 crore in November. Overall, in the last year i.e. 2022, FPIs have withdrawn Rs 1.21 lakh crore from the Indian stock markets on a net basis.
Aggressive rate hikes by the US Federal Reserve and other central banks, volatility in crude oil prices, high commodity prices and the Russia-Ukraine war led to FPI selling last year. Himanshu Srivastava, Associate Director Manager Research, Morningstar India, said, “FPIs are staying away from emerging markets like India due to the resurgence of Kovid infection in some parts of the world and the concern of recession in the US.”
Apart from equities, FPIs also pulled out Rs 1,240 crore from the debt or bond market in the first week of January. Apart from India, FPI flows have also been negative in the markets of Taiwan and Indonesia. However, their flows have been positive in the Philippine, South Korea and Thailand markets. (agency)