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FPI investors are rapidly withdrawing money from the Indian market, withdrew 12,286 crores so far in April

Foreign Portfolio Investment: Foreign investors have withdrawn Rs 12,286 crore from the stock market so far in the month of April. Foreign investors are increasingly withdrawing their money from the Indian market amid fears that the US central bank will raise interest rates by the Federal Reserve.

Know what is the opinion of experts?
Experts believe that the possibility of increase in interest rates by the US central bank, Russo-Ukraine war, volatility in crude oil prices, high inflation on the domestic front due to foreign portfolio investors (FPI) investment in Indian stock markets. The flow will remain under pressure.

6 consecutive months of selling
Let us tell you that FPIs had sold for six consecutive months in the Indian stock markets till March 2022. During this, he had withdrawn Rs 1.48 lakh crore from the Indian stock markets. The main reason for this was the fear of a hike in interest rates by the Federal Reserve and the situation created by Russia’s attack on Ukraine.

Continued selling
After selling for six consecutive months, FPIs had infused Rs 7,707 crore into the shares in the first week of April. After this, during the week of low trading sessions from April 11 to 13, he pulled out Rs 4,500 crore from the shares. FPI selling continued in the following week as well.

Withdraws Rs 12,286 crore
According to depository data, during April 1 to 22, foreign investors have withdrawn a net Rs 12,286 crore from the Indian markets. Apart from shares, FPIs have also withdrawn Rs 1,282 crore from the debt or bond market during the period under review.

Know what is the opinion of experts?
Himanshu Srivastava, Associate Director-Manager Research, Morningstar India, said, “Anxiety of an interest rate hike by the US Federal Reserve is affecting investor sentiment. In such a situation, investors are once again taking a cautious approach about their investments in emerging markets.

Crude oil prices rising
Shrikant Chauhan, Head of Equity Research (Retail), Kotak Securities said that due to high crude oil prices, high inflation, slowdown in GDP growth rate, FPI inflows will remain volatile in the near future. Apart from India, FPIs have also pulled out from other emerging markets such as Taiwan, South Korea and the Philippines in April.

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