Foreign Investors Disillusioned

Foreign Investors are getting disillusioned with the domestic stock market. Since October, he has been continuously withdrawing money from the market and this has also curbed the gains of Sensex and Nifty. In just two and a half months, he has sold shares worth several thousand crores.

According to National Securities Depository Limited (NSDL) data, foreign portfolio investors (FIIs) have sold shares worth Rs 32,000 crore since October 2021.

The growth of the stock market has been restrained because foreign investors are withdrawing money.

Investors withdraw huge money in the Current financial year

So far in the current financial year, foreign portfolio investors have made net withdrawals of Rs 23,950 crore. Whereas till date his total investment has been Rs 31,792 crore. The stock market has come down sharply in the last two and a half months. In October, the Sensex touched the figure of 61,000 points, but since then it has continued to decline. Between September 30 and December 16, it fell by 1,225 points, or 2.07%, from 59,126.36 points to 51,901 points. Whereas Nifty has fallen 369.75 points or 2.10 percent at 17,248.40 points.

Why are foreign investor selling

Regarding the sell-off of foreign investors in the stock market, Ajit Mishra, Vice President-Research, Religare Broking, says that due to the emerging concerns domestically and globally, FII has intensified the sell-off in the Indian stock market. Globally, concerns have increased due to the possibility of the Federal Reserve Bank increasing the interest rate. This is due to the new variant of Corona Omicron and rising inflation in the US. On the other hand, the low earnings of companies have also weakened the sentiment among investors.

For more financial-related market updates, stocks, mutual funds, insurances, direct investments do read and subscribe to our pages and website and share this information with your circle on social media.