FPI Investment: Foreign portfolio investors (FPIs) have withdrawn Rs 4,285 crore from the Indian stock markets in the first three trading sessions of this month due to concerns ahead of the third quarter results of companies and high valuation of domestic stocks. This information has been received from the data of the depository. Earlier, in the entire month of December, FPIs had invested Rs 15,446 crore in shares. There has been a change in the sentiment of FPIs amid global and domestic challenges.

why are you selling

VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, "As long as the dollar remains strong and US bond yields remain attractive, FPI selling is likely to continue. The dollar index is currently around 109 and the yield on 10-year bonds is more than 4.5 percent. Due to this, FPIs are withdrawing. "

Sold shares worth Rs 4,285 crore

According to the data, FPIs have sold shares worth Rs 4,285 crore during January 1 to 3. The uncertainty among foreign investors is reflected in the current withdrawal trend.

Himanshu Srivastava, Associate Director-MD, Morningstar Investment Research India, said that foreign investors have adopted a cautious stance ahead of the third quarter results of companies. Apart from this, investors are also being cautious due to the possible policies of US President-elect Donald Trump and their impact on global markets.

Rupee depreciates against the dollar

The fall in the rupee against the dollar has further weakened FPI sentiment, as currency risks have made Indian investments less attractive. Moreover, indications by the US Federal Reserve of fewer interest rate cuts this year have also failed to boost investor confidence.

How was the attitude of FPI in 2023

On the domestic front, FPIs are selling mainly due to high valuations. Overall, the trend reflects a cautious stance by foreign investors, who have invested a net of just Rs 427 crore in Indian stocks in 2024.

In 2023, FPIs invested Rs 1.71 lakh crore in Indian stocks. Whereas in 2022, FPIs sold Rs 1.21 lakh crore.