According to statistics from the National Securities Depository Limited (NSDL), foreign portfolio investors (FPIs) went from being strong buyers to net sellers in the Indian equities market, resulting in a negative net investment of Rs 977 crore this week.

The output is:According to the statistics, FPIs first displayed strong buying activity between December 16 and December 20, buying stocks totaling Rs 3,126 crore during the week’s first two trading days.

The next three days saw a reversal of the trend, with FPIs selling stocks valued at nearly Rs 4,103 crore. The net weekly investment went into negative territory as a result of this strong selling.

The total net investment made by FPIs in December is still positive, even with this current selling spree. According to the statistics, FPIs have so far this month invested Rs 21,789 crore in Indian stocks, demonstrating their ongoing confidence in the prospects for economic development in the nation.

According to market experts, the selling pressure may be caused by global causes such as profit-booking after recent market rises, geopolitical risks, and worries about central banks raising interest rates.

“This week was one of risk-off” in global markets because of the Fed,” Ajay Bagga, a banking and market analyst, said to ANI. FPI outflows from EMs were caused by a strong US currency and increasing US bond rates, even if US markets saw a little recovery on Friday. With the rupee falling to its lowest level ever against the US dollar, India had to contend with these global challenges. Due to these global signals, FPI selling has been robust during the previous week. For now, a Santa Claus rally has been ruled out.

Prior to this, according to statistics from the National Securities Depository Limited (NSDL), Foreign Portfolio Investors (FPIs) sold stocks for Rs 21,612 crore in November, a considerable decrease from Rs 94,017 crore in October.

The FPIs purchased equities valued at Rs 26,565 crore, Rs 32,365 crore, Rs 7,320 crore, and Rs 57,724 crore in June, July, August, and September, respectively. Purchasing overseas financial assets is the definition of foreign portfolio investment, or FPI.

Even while FPIs were net sellers at the conclusion of this week, their positive net investment for December shows that they are still confident in India’s economic narrative.