Foreign investors withdrew Rs 14,800 crore from Indian stocks in June due to election results

From Economic Times: 2024-06-09 02:08:05

Foreign investors pulled out nearly Rs 14,800 crore from Indian stocks in June due to election results and attractive Chinese stock valuations. Interest rates will drive foreign investment in Indian markets. FPIs withdrew Rs 14,794 crore in the first week of June. High Indian valuations lead to capital shift to cheaper markets.

Election results impacted foreign investor sentiment in Indian markets as BJP and NDA victory expectations were not met. Foreign investors worried about lack of clear majority in elections. FPIs shifted focus to cheap Chinese stocks. However, FPIs invested over Rs 4,000 crore in the Indian debt market due to upcoming inclusion in JP Morgan Index.

Despite a net withdrawal of Rs 38,158 crore from equities in 2019, foreign investors invested Rs 57,677 crore in the Indian debt market. Long-term outlook for FPI flows into Indian debt market is positive. Global macroeconomic uncertainty and volatility affect near-term flows. Interest rates will drive future foreign investment in Indian equity markets.



Read more at Economic Times: Foreign Portfolio Investors: FPIs take out Rs 14,800cr from equities in Jun on poll results, attractive Chinese stock valuations