Foreign portfolio investors sell off Indian stocks, shifting focus to China, causing negative impact on market

From Google: 2024-10-06 19:46:00

Foreign portfolio investors (FPIs) have sold off Rs 27,000 crore worth of stocks in India over the past three days, as they shift their focus to Chinese equities. This sell-off comes as tensions escalate between India and China along their border. FPIs have also reduced their exposure to Indian markets amid the global economic uncertainty caused by the COVID-19 pandemic. The outflow of funds from Indian markets has put pressure on the rupee and stock market indices.

The sell-off by FPIs has caused concerns among investors and policymakers in India, as it could further weaken the country’s economic outlook. The depreciation of the rupee and the decline in stock market indices point to a lack of confidence among foreign investors in the Indian economy. This has led to calls for measures to attract more foreign investments and boost economic growth.

The impact of FPIs selling off Indian stocks is felt across various sectors, with banking and financial services among the worst hit. The outflow of funds has also affected sectors like technology, consumer goods, and pharma. Investors are closely monitoring the situation, as any further sell-off could trigger more volatility in the market and negatively impact domestic investors as well.

Despite the sell-off by FPIs, some analysts believe that India still presents attractive investment opportunities compared to other emerging markets. The country’s strong fundamentals and long-term growth potential could help attract foreign investors back to the Indian markets. However, the geopolitical tensions with China and the ongoing economic challenges pose risks that need to be addressed to regain investor confidence.



Read more at Google: FPIs sell Rs 27,000 crore stocks in 3 days amid shift to China – The Times of India