FPIs Turn Net Sellers: Rs 21,201 Crore Withdrawn from Indian Equities in August
Saturday, 17 August 2024, 23:44
Market Reaction to FPIs Selling Trend
In August, foreign portfolio investors (FPIs) turn net sellers, leading a substantial withdrawal of Rs 21,201 crore from Indian equity markets. The primary drivers behind this trend have been the unwinding of the yen carry trade, increasing worries about a potential US recession, and escalating geopolitical tensions that have significantly affected investor sentiment.
Factors Impacting Foreign Investment
- The effects of the yen carry trade unwinding are magnified by global market volatility.
- Concerns about the US economy have prompted cautious approaches from investors.
- Geopolitical tensions influence investment decisions adversely.
Evaluating these aspects reveals a concerning trend that may lead to extended impacts on the market, particularly in volatility and confidence metrics.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.