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FPI investors did not like the Indian market, withdrew Rs 4500 crore last week

Foreign Portfolio Investment: Foreign investors are continuously withdrawing money from the Indian markets. Last week also, investors have withdrawn more than Rs 4500 crore from the Indian market. Foreign investors pulled money from the market last week due to fears of a hike in interest rates by the US central bank Federal Reserve.

The market showed correction in the first week of April
Let us tell you that earlier during April 1 to 8, Foreign Portfolio Investors (FPIs) had made a net investment of Rs 7707 crore in the Indian market. At that time, due to the ‘correction’ in the market, FPIs got a good buying opportunity.

Last 6 months of continuous selling
Let us tell you earlier that during the six months till March 2022, FPIs remained net sellers and they have withdrawn a huge amount of Rs 1.48 lakh crore from the shares. The main reason for this was the possibility of an increase in rates by the US Fed Reserve and Russia’s military attack on Ukraine.

Know what is the opinion of experts?
Sonam Srivastava, Founder, SEBI Registered Investment Advisor, Right Research, said, “We are expecting FPIs to come back to India in a big way once the Ukraine crisis subsides as our valuations have become highly competitive.”

4518 crore withdrawn between 11 to 13 April
According to depository data, FPIs have withdrawn Rs 4,518 crore from Indian stock markets during the short holiday trading week on April 11-13. The stock markets were closed on Thursday on Mahavir Jayanti and Dr. Babasaheb Ambedkar Jayanti and on Friday on Good Friday.

Fed Reserve may raise interest rates
FPIs were net sellers during the week on fears of an aggressive rate hike by the US central bank. Morningstar India Associate Director-Manager Research Himanshu Srivastava said FPIs have taken a cautious approach to their investments in emerging markets like India due to the possibility of the US central bank raising interest rates aggressively.

Know what is the opinion of experts?
Let us tell you that FPIs have withdrawn Rs 415 crore from the loan or bond market last week. Earlier last week, he had put in a net Rs 1,403 crore in the bond market. Srivastava said, “FPI selling is in line with the declining trend in global markets. Global markets came down on fears of an aggressive rate hike by the Federal Reserve. Apart from this, India’s inflation figures, which came last week, have also been higher than expected. Because of this also the perception got affected.

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