look news india
Today there has been a boom in the market. Sensex has once again touched the magical figure of 80 thousand. Due to which investors have earned Rs 8 lakh crore in a day. Rs 7 lakh crore was earned on Friday. In this way the market has earned Rs 15 lakh crore in two days. Now the question here is that the market is growing rapidly, where does this money come from? Who is buying so much in the Indian market? So the answer is foreign investors.
It is noteworthy that the market witnessed a rise only after the election results of Maharashtra on Saturday. But it was not expected to see such speed. Foreign portfolio investors who have so far received Rs. Rs 26,533 crore has been withdrawn. Now they are investing the same money. If we talk about today, foreign investors have purchased future derivatives in stock category worth Rs 12,395 crore. Which is once again indicating bullishness in the market.
Secondly, if we look at the selling, till November 17, foreign investors had withdrawn about Rs 22 thousand crores from the Indian market, which can reach only Rs 26,533 crores in the next one week. This means that in a week approximately Rs. Sales of Rs 4500 crore, indicating decline in sales pace. This means that now the pace of withdrawal of money from the Indian market by foreign investors is slowing down.
Will the market rise now?
The simple thing is that when the pace slows down, the Indian market will pick up. When you pay Rs. The sales of Rs 1 lakh crore so far in November seem to be very less than the sales of Rs 26,533 crore. This means that now we may see a rise soon.
FPIs are investing in the Chinese market due to weak quarterly results of companies and high valuations of local stocks. Due to this, they are continuously selling in the Indian market. Although FPIs continued selling, their net outflows declined significantly compared to October. In October, FPIs withdrew Rs. from the Indian market. Net outflow of Rs 94,017 crore ($11.2 billion).
What do the experts say?
Going forward, the flow of foreign investors into the Indian stock market will depend on the policies of newly elected US President Donald Trump, said Himanshu Srivastava, associate director-manager research, Morningstar Investment Research India. Apart from this, inflation and policy rates will also be important for the sentiment of foreign investors. He further said that the third quarter results of companies and geopolitical developments will also be important for the direction of FPI. According to the data, FPIs have sold shares worth Rs 1,000 this month i.e. till November 22. Net amount of Rs 26,533 crore was withdrawn. In October it earned Rs. The net withdrawal was Rs 94,017 crore, which was their highest withdrawal figure in a single month. In September FPI invested Rs. Invested. 57,724 crore, which was a nine-month high for their investments.
China is the villain for India
Srivastava said there are concerns over high valuations of Indian equities, due to which FPIs are moving to markets with more attractive valuations. He said that China gets investment from foreign investors at the expense of India due to its attractive valuations. Additionally, China has recently announced some stimulus measures to boost its slowing economy.
Bonds are also affected
According to the data, Foreign Portfolio Investment (FPI) has withdrawn Rs 25,000 crore so far this month. Rs 1,110 crore has been withdrawn. When he collected Rs.100 through Voluntary Retention Route (VRR). An investment of Rs 872 crore has been made. Overall, foreign portfolio investment in the bond market so far this year has been Rs. An investment of Rs 1.05 lakh crore has been made.