FPI: Foreign investors’ confidence down, Rs 17,537 crore withdrawn from Indian markets in March so far

Foreign Portfolio Investors (FPIs) are continuing to withdraw money from the Indian market. FPIs have withdrawn Rs 17,537 crore from the Indian markets in the 3rd trading session of March. Foreign investor sentiment was affected by the uncertainty arising from the Russia-Ukraine conflict and rising crude oil prices.

According to depository data, FPIs have withdrawn Rs 14,721 crore from equity and Rs 2,808 crore from debt segment during March 2 to 4. During this, he has withdrawn Rs 9 crore in hybrid instruments. In this way, foreign investors withdrew a total of Rs 17,537 crore from Indian markets during March 2-4.

Continuation intensified from October 2021
It is worth noting that FPIs are continuously withdrawing from the Indian markets since October 2021. FPI outflows in February 2022 have been the highest since March 2020.

VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “The uncertainty arising out of the war and the buoyancy in crude oil prices has affected the market sentiments globally.”

According to Himanshu Srivastava, Associate Director (Manager Research), Morningstar India, “Such geopolitical tensions with respect to overseas flows are not good for emerging markets like India. The high valuations of the Indian equity markets coupled with the risk associated with earnings of companies and the slowing pace of economic growth have acted to prevent foreign investors from investing freely in the Indian stock market.