Why is FPI selling continuing in November, shares worth more than Rs 5800 crores sold so far

Foreign investors are still withdrawing money from the stock market. According to the latest data, till the last trading day i.e. November 10, foreign portfolio investors (FPIs) have withdrawn more than Rs 5,800 crore.

During November 1-10, FPIs sold shares worth Rs 5,805 crore. The ongoing withdrawal by FPIs is due to rising interest rates and geopolitical tensions in the Middle East.

Last month in October, FPI had withdrawn Rs 24,548 crore and before that in September, it had withdrawn Rs 14,767 crore.

However, before this i.e. from March to August, FPIs had invested Rs 1.74 lakh crore in the market in the last six months.

According to experts, further selling will not continue in the coming time as the US Federal Reserve had indicated a dovish stance in its meeting last week. The selling phase by FPIs that started in September continues till October and then November.

According to the data, the debt market earned Rs 6,381 crore in October, while the debt market has earned Rs 6,053 crore so far in November. With this, so far this year the total investment of FPI inequity has reached Rs 90,161 crore, and in the debt market has reached Rs 41,554 crore.

“This may represent a strategic move by foreign investors to allocate funds to Indian debt in the short term when conditions become more favorable,” Himanshu Srivastava, associate director, manager research, Morningstar Investment Advisors India, told PTI. ", the intention is to redirect capital into the equity markets."