As a result of global trade tensions brought on by the US placing tariffs on nations like Canada, Mexico, and China, foreign portfolio investors (FPIs) withdrew approximately Rs 7,300 crore from the Indian equity markets in the first week of this month.
This followed a Rs 78,027 crore outflow for the whole month of January. According to statistics from the depositories, they had already invested Rs 15,446 crore in December. Experts predict that going forward, domestic policy actions, currency fluctuations, and global macroeconomic developments will all likely influence market sentiment.
The data shows that so far this month, shares from Indian stocks valued at Rs 7,342 crore have been sold by Foreign Portfolio Investors (FPIs).
FPIs, however, were purchasers in the debt market. They invested Rs 277 crore in the debt voluntary retention route and Rs 1,215 crore in the debt general limit.
With net inflows of only Rs 427 crore in 2024, foreign investors dramatically reduced their investments in Indian equities, indicating a cautious posture generally.
The remarkable net inflows of Rs 1.71 lakh crore in 2023, which were fueled by optimism about India’s solid economic fundamentals, stand in stark contrast to this. In contrast, a net outflow of Rs 1.21 lakh crore occurred in 2022 as a result of aggressive rate hikes by central banks around the world.
