look news india
Mumbai: Foreign portfolio investors (FPIs) continued to bid goodbye to India and sold a record Rs 1,00,253 crore in shares in just 25 days of October. According to this, so far in the month of October, foreign funds have raised capital of more than 10 billion dollars in just 25 days. In comparison, domestic institutional investors (DIIs) have bought shares worth a net Rs 96788 crore in these 25 trading days. But there has been a continuous decline in the shares.
Foreign investors are continuously selling as if they have lost faith in India. Indian stock markets have been witnessing a historic rise continuously for the last few years, in the year 2024 itself, the Sensex had made an all-time high of 85978.25 on 27 September 2024. Along with this, Nifty 50 index also made a record high of 26277.35. After being at record highs for a long time, the valuations of many stocks have become more expensive than the company's performance and fundamentals.
SEBI and market analysts, experts have started warning investors for some time now that the valuations of small, mid cap stocks do not match the fundamentals of the companies. Along with this, funds have also started lightening their investment portfolio.
Mutual funds are still buying stocks at higher prices to counter the ongoing selling of Rs 21,000 crore of shares by foreign funds through systematic investment plans (SIPs) of retail investors every month. But due to continuous fall in shares in the market, Sensex, Nifty, Small Cap, Mid Cap indices are seen falling.
Indian stock markets also saw a fall in share prices due to geopolitical tensions over the war between Israel-Hamas-Hezbollah and conflict with Iran as well as China's announcement of mega stimulus-relief package to save its economy. Going because foreign funds are disinvesting from India to invest in China.
In 25 trading days, the Sensex has also fallen by 4897.29 points or 5.81 percent from the level of 84299.78 on September 30, 2024 to the level of 79402.29. At the same time, Nifty 50 spot index has also fallen by 1630.05 points or 6.32 percent from the level of 25810.85 on September 30, 2024 to the level of 24180.80. Whereas in these 25 days, investors' wealth i.e. total market capitalization of BSE listed companies has also decreased from Rs 471.35 lakh crore to Rs 34.37 lakh crore to Rs 436.37 lakh crore.