FPI Outflow Oct 2023: Foreign investors withdrew Rs 9,800 crore from the Indian market, know why FPIs became sellers in October?

Foreign investors are continuously selling from the Indian stock market. The selling trend that started last month has gained further momentum during the month of October. Only two weeks of this month have passed and so far foreign investors have withdrawn about Rs 10 thousand crores.

So many crores were withdrawn last month

According to a report by news agency PTI. According to this, foreign portfolio investors have sold about Rs 9,800 crore so far in the month of October. Earlier during the month of September, FPI had withdrawn Rs 14,767 crore from the Indian market. This selling by foreign investors is happening at a time when the domestic market is showing great strength and is performing better than many global markets.

Good buying from March to August

< p>Foreign portfolio investors in the Indian market sold for the first time in September after a gap of several months. Before that, FPIs had remained buyers in the Indian market for six consecutive months. FPIs had continuously invested in the Indian market in the six months from March to August 2023. During the months under review, foreign investors had made huge purchases worth Rs 1.74 crore in the Indian market.

The trend is likely to continue

Data from depositories show that foreign portfolio investors Has withdrawn Rs 9,784 crore this month. This figure is till October 13. After that the market is closed on Saturday 14th October and Sunday 15th October. Now the market will reopen on Monday 16th October. However, there is a fear that the trend that has been going on for the last one and a half months may continue in future as well.

Selling happened due to these reasons

Let’s talk about the reasons for selling by foreign investors If we talk about it, then analysts are attributing this to the decent increase in US bond yields and increased uncertainty due to Israel-Hamas war. After controlling inflation to some extent in America, the US Federal Reserve has now stopped increasing interest rates. Before that the Federal Reserve was aggressively increasing interest rates. Due to which investors started selling from emerging markets. The increased uncertainty due to war since last one week has worsened the atmosphere.

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