FPI Investment in December: Due to the ongoing uncertainty in the market, foreign portfolio investors have withdrawn their money from the Indian market. Foreign investors have withdrawn Rs 17,696 crore so far in the month of December. Due to Omicron variants and US Fed Reserve closing bond purchases earlier than expected, FPIs have pulled money from the market.
According to depositories data, FPIs pulled out Rs 13,470 crore from equities, Rs 4,066 crore from debt segment and Rs 160 crore from hybrid instruments between December 1-17, according to the data. FPIs had net sales of Rs 2,521 crore in the Indian markets in November.
Know what the experts said?
Himanshu Srivastava, Associate Director (Manager Research), Morningstar India said that there is uncertainty on both the global and domestic front. He said that the Omicron variant of the corona virus remains a concern and has affected the global growth outlook. Apart from this, economic growth has also been relatively slow and India’s income has not increased much, he said. If the situation worsens, foreign investors can withdraw their investments from emerging markets like India.
Banking stocks become attractive
VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said since banking has the largest FPI holding, it is bearing the brunt of FPI sales. He added that frequent FPI sell-offs have made high quality banking stocks attractive from a valuation perspective.
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