Foreign guests or simply say that the indifference of foreign investors is constantly being seen in August. Due to which the stock market is also being seen continuously. Looking at the data, foreign portfolio investors (FPIs) have sold about Rs 21,000 crore in the Indian stock market in the first fortnight of August. The US-India trade stress, the FPI selling remains amidst the weak results of the first quarter of the companies and the decline in the rupee. According to the deployment data, with this, in 2025, the FPI has so far withdrawn a total of Rs 1.16 lakh crore from the Indian stock market. The attitude of FPI will be further decided by activities on the fee.
According to depository data, foreign portfolio investors (FPIs) have made a net withdrawal of Rs 20,975 crore from shares this month (till 14 August). Earlier in July, he had withdrawn Rs 17,741 crore from the local stock market. In three months from March to June, the FPI had invested Rs 38,673 crore in the Indian stock market. During the period under review, the FPI has invested Rs 4,469 crore under the general limit in the bond and has invested Rs 232 crore by voluntary retention route.
Waqar Javed Khan, Senior Fundamental Analyst (CFA) of Angel One, said that due to the recent decrease in tension between the US and Russia and lack of new restrictions, it seems that the proposed 25 percent of the proposed 25 percent fee (secondary tariff) on India is unlikely to be implemented after August 27. This is clearly positive signal for the market. He further said that S&P has increased India's credibility from BBB to BBB, which can give further strength to the notion of FPI.
Associate Director of Morningstar Investment Research India-Manager Research Himanshu Srivastava said that the continuous withdrawal of FPI is mainly due to global uncertainties. Increasing uncertainty over the increase in geopolitical tension and interest rates in the US and other developed economies has weakened the notion of risking risk. He said that with this recently, due to the strengthening of US dollar, the attraction of emerging markets like India has reduced. VK Vijaykumar, the main investment strategist at Jiojit Investments, said that the FPIs remain selling due to the weak results and high evaluation of the companies.
