From Barchart: 2024-06-10 00:58:01

Foreign investors withdrew nearly Rs14,800 crore from Indian stocks this month due to election results and attractive Chinese stock valuations. This followed net outflows of Rs25,586 crore in May and over Rs8,700 crore in April. FPIs had previously invested Rs35,098 crore in March, Rs1,539 crore in February, and withdrew Rs25,743 crore in January.

The Indian election results greatly impacted foreign investment in June. Optimistic exit polls were followed by unexpected results, leading to a market sentiment reversal and significant outflow by foreign investors. Concerns arose due to the lack of a clear majority. This prompted FPIs to shift capital to cheaper markets, including Chinese stocks.

FPIs showed pessimism towards high Indian valuations, leading to capital shifts to cheaper markets like China. Chinese stock valuations are now considered attractive by FPIs, resulting in investments in Hong Kong-listed Chinese stocks. However, FPIs invested over Rs4,000 crore in the Indian debt market during this period.



Read more at Barchart: FPIs offload `14,800-cr worth equities in Jun