Foreign Investors Sold ₹21,201 Crore Worth Of Indian Stocks Amid Global Uncertainties

Last updated on August 19th, 2024 at 10:31 pm

In August, foreign investors sold ₹21,201 crore worth of Indian stocks.

Yen Carry Trade Unwinding: Some investors who had borrowed yen (Japanese currency ) to invest in Indian stocks were pulling out due to changes in currency conditions.

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US Recession Fears: Concerns about a possible recession in the US made investors more cautious.

Geopolitical Conflicts: Ongoing global conflicts added to the uncertainty.

This heavy selling in August followed substantial inflows in the previous months, with foreign investors bringing in ₹32,365 crore in July and ₹26,565 crore in June, according to data from the depositories.

The inflows were motivated by expectations of sustained economic growth, ongoing reforms, a better-than-expected earnings season, and political stability.

Before the inflows in June and July, FPIs withdrew ₹25,586 crore in May due to election-related uncertainties and over ₹8,700 crore in April due to concerns about changes in India’s tax treaty with Mauritius and rising US bond yields.

According to the data, FPIs withdrew a net amount of ₹21,201 crore from Indian equities between August 1 and 17. Despite this, FPIs have invested a total of ₹14,364 crore in equities so far this year.

The outflows in August were influenced by a mix of global and domestic factors.

Disclaimer: This information is for educational purposes only and not investment advice. Always consult with a financial advisor before making any investment decisions.

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