Foreign investors withdrew Rs 17,083 crore in 10 days, uncertainty in FPI due to election environment
FPI Outflow: FPI has withdrawn Rs 17,083 crore from domestic stock markets in the first 10 days of May. Amid uncertainty over election results, foreign investors are withdrawing from domestic markets to seek higher valuations and book profits.
Foreign portfolio investors (FPIs) have withdrawn Rs 17,083 crore from domestic stock markets in the first 10 days of May. Amid uncertainty over election results, foreign investors are withdrawing from domestic markets to seek higher valuations and book profits.
Changes in India's tax treaty with Mauritius and an increase in bond returns in the US had caused FPIs to make a net withdrawal of Rs 8,700 crore earlier in April. Thus, during the first ten days of May, FPI withdrawals exceeded those of April. In March, FPI invested a net amount of Rs 35,098 crore, while in February, it invested Rs 1,539 crore. Because of the robust financial performance of domestic companies, it is anticipated that foreign investors (FIPs) will boost their investment in the Indian market following the elections.
Apart from shares, FPIs have also withdrawn Rs 1,602 crore from the debt or bond market. Earlier, Rs 13,602 crore was invested in the bond market in March, Rs 22,419 crore in February, and Rs 19,836 crore in January. FPIs have withdrawn a total of Rs 14,860 crore from shares so far in 2024.
New Delhi. There has been a net withdrawal of Rs 396 crore from the Gold Exchange Traded Fund (ETF) in April. This withdrawal has happened due to investors reaping profits. However, there was an inflow of Rs 373 crore in March. Despite these withdrawals, assets under management (AUM) of gold ETFs grew by five percent to Rs 32,789 crore at the end of April, according to Association of Mutual Funds in India (Amfi) data. The AUM of Gold ETF was Rs 31,224 crore in March.
