Record rally in the market, but the confidence of foreign investors was shaken

About 1500 crores withdrawn so far in October 

Foreign portfolio investors (FPIs) have remained net sellers in the Indian capital markets so far in October. Due to this, during the last two months, FPIs had invested in the Indian markets. Experts say that due to the fall in the rupee and global factors, FPIs are selling. This week Sensex 61306 and Nifty closed at a new record of 18338. On the last trading session i.e. on October 14, the market had set a new record and for the first time it crossed 61 thousand and also closed.

According to depository data, foreign investors have so far withdrawn a net Rs 1,472 crore from the Indian capital markets in the current month. The attitude of FPIs on the debt or bond market has completely reversed. Earlier in September, FPIs had invested Rs 13,363 crore in the bond market and Rs 14,376.2 crore in August. In October, he has withdrawn Rs 1,698 crore from the bond market.

VK Vijayakumar, chief investment strategist, Geojit Financial Services, said, “This change in the stance of FPIs is due to the rupee depreciation in October.” However, FPIs have a net investment of Rs 226 crore in equities. Vijaykumar said, “FPIs were net sellers in banking stocks in the first fortnight of September. But in the second fortnight, he bought. He sold software services companies throughout the month in September. FPI inflows to this sector are expected to increase going forward on the back of good performance of IT companies Wipro, Infosys and Mindtree.

Himanshu Srivastava, Associate Director, Research, Morningstar India said that the market is currently at its all-time high. This has also increased the valuation. In such a situation, FPIs are probably adopting a ‘watch and wait’ policy right now.