FPI Investment: Due to the high valuation of the domestic stock market, rising allocations in China, and a rise in the US dollar as well as treasury yield, foreign investors have withdrawn Rs 22,420 crore from the Indian equity market so far this month. Due to this sell-off, foreign portfolio investors (FPIs) have withdrawn a total of Rs 15,827 crore so far in 2024. Akhil Puri, partner, and financial advisor, Forvis Majors in India, said that along with the reduction in liquidity, FPI flow is expected to remain low in the short term. Positive changes in FPI activity are unlikely before the beginning of January, due to which the overall market sentiment remains weak.

So far Rs 22,420 crore has been withdrawn.

According to the data, FPIs have withdrawn Rs 22,420 crore so far this month. This amount has been withdrawn after withdrawing Rs 94,017 crore in October. Earlier, in March 2020, FPIs had withdrawn Rs 61,973 crore from equity. In September 2024, foreign investors invested at a nine-month high of Rs 57,724 crore.

Why withdraw funds

VK Vijayakumar, Chief Investment Strategist, at Geojit Financial Services, said that the continuous selling by FPIs since October has been due to the combined effect of three factors. These factors are high valuations in India, concerns over falling earnings, and Donald Trump's victory in the US presidential election have also affected sentiments.

How much did you invest in the debt market?

On the other hand, FPIs invested Rs 42 crore in the debt general limit and Rs 362 crore in the debt voluntary retention route (VRR) during the period under review. So far this year, FPIs have invested Rs 1.06 lakh crore in the debt market.