look news india
Ahmedabad: Due to uncertainty over the Lok Sabha election results and strong performance of Chinese markets, foreign portfolio investors (FPIs) have pulled out rupees. A huge amount of Rs 22,000 crore has been withdrawn.
Earlier, FPIAs had withdrawn from equities in April amid concerns over changes in India's tax treaty with Mauritius and the continued rise in bond yields in the US. Rs 8,700 crore was withdrawn. While in March, FPIAs had a net investment of Rs. 35,098 crore and in February Rs. 1,539 crore.
Going forward, as things become clear on the election front, FPI buying in the Indian market will increase. The process of buying by FPI may start even before the election results.
According to depository data, foreign portfolio investors have pulled out a net Rs. 22,047 crore. Due to the good performance of the Chinese stock market, there was a strong sell-off by FPIs.
Amid uncertainty over the results of the general elections, foreign investors are currently cautious about entering the Indian stock markets. For this they are waiting for the election results. During the period under review, FPIA has invested Rs. 2,09 crore in the debt or bond market.
Earlier in March, FPIAs had invested Rs. 13,602 crore in the bond market. Rs. 19,836 crore was invested in February and Rs. 22,419 crore in January. This year, a total of Rs. 19,824 crore has been withdrawn by FPIAs from the market. During this period, it has invested Rs. 46,917 crore in the bond market.