FPI Selling Continues, Pull out Rs 7,300 Crore from equities

New Delhi: The Exodus of Foreign Portfolio Investors (FPIS) from the Equity Markets Continued unabated, as they withdrew over Rs 7,300 Crore (About $ 840 Million) in the first week of this month due to Global Trade TensionsWith the US imposing tariffs on countries such as canada, mexico, and china.
This came Following an outflow of Rs 78,027 Crore in the Enter January. Before that, they invested Rs 15,446 Crore in December, Data with the Depositories Showed. Going forward, experts believe that market sentry will likely take cues from global macroeconomic developments, domestic policy measures, and currency movements.
According to data, FPIS offloaded shares Worth Rs 7,342 Crore from Indian Equites so far this month (Till Feb 7).
Himanshu Srivastava, Associate Director-Manager Research, Morningstar Investment Research India, Said That A Key Driver of the Outflow WAS Global Trade Tensions, as the usful Ing canada, mexico, and china, heightening fears of a potential trade war. This Uncertainty triggered a Risk-Averse Sentiment Among Global Investors, Prompting Capital Flight from Emerging Markets Like India. Further exacerbating the situation, the Indian rupee depreciated sharply, Breaching Rs 87 per us dollar mark for the first time. A Weaker Rupee Erodes Returns for Foreign Investors, Making Indian Assets Relatively Less Attractive and Adding to the Pressure on FPI LOWS, Srivastava added.
“The Strength in Dollar Index and the High Us Bond Yields Continue to Force FPIS to Sell. Ief Investment Strategist, Geojit Financial Services, said.
He further said that the sentiments in the Indian market would be lowly improve in response to the budget announcing and the rate cut by the reserve bank of India (RBI). The Victory of the BJP in the Delhi Elections is Likely to positively impact the market in the short run. However, the medium to long-term trend in the market will depend on the recovery in GDP Growth and Earnings Recovery, He Added.
“Given the Volatile, Subtle, and Unpredictable Market Events, India Still Stands Grounded Well With The Government Taking All Rightful Measures to Make it ready to face the global economic challenge Purohit, Partner & Leader, FS Tax, Tax & Regulatory services, BDO India, said.
On the other hand, fipis was boyers in the debt market. They put in Rs 1,215 Crore Into Debt General Limit and Rs 277 Crore in Debt Voluntary Retention Route.
The overall trend indicates a cautious approach by Foreign Investors, Who Scled Back Investments in Indian Equites Significantly in 2024, with NET Inflows of Just RS 427 Crores.
Investors would track a host of macroeconomic data announcing Ongoing Quarterly Earnings Announcements and Rupee-Dollar Trend All also Influence Markets.
“This week is set to be dynamic for global and Indian markets, driven by key macroeconomic data releases and corporate earnings. Market Signment Nouncements, “Master Trust Group Director Puneet Singhania Said .
On Wednsday, The US Inflation data for jan will be in focus. Later in the day, Fed Chair Jerome Powell's Testimony will be Watched for Insights Into Rate Expectations, Singhania said. “For India, Inflation and Industrial Production Data will be released on February 12,” He said.