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Will the six-year record of foreign investors withdrawing Rs 15,000 crore in June be broken?

Sagar Patel

By Sagar Patel

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Foreign investors withdrew around Rs 15,000 crore in the month of June.

April, then May and now June. This is the third consecutive month that foreign investors, i.e. foreign portfolio investors, are not happy with the Indian stock market. What is special is that if this trend continues throughout June, for the first time in approximately six years we will see investors withdraw money continuously in the first quarter of a financial year. In the first week of June, foreign investors withdrew around Rs 15,000 crore from the Indian stock market. On the other hand, foreign investors still have confidence in the bond and debt markets. Due to which foreign investors have invested more than Rs 4,000 crore in a week. Let’s try to understand from the figures how foreign investors are going to break the six-year record.

Started for the third consecutive month

The process of withdrawal of money from the Stock Market by foreign investors, which began in the months of April and May, also began to become visible in the month of June. The special thing is that due to instability in the stock market, foreign investors withdrew Rs 14,794 crore from the stock market in the first week. By early April, foreign investors had withdrawn Rs 8,671 crore from the stock market. While in May this figure increased to 25,586 million rupees. While 1,539 million rupees were invested in the month of February and 35,098 million rupees in the month of March. In the month of January, foreign investors had withdrawn Rs 25,744 billion. In the current year, foreign investors have already withdrawn Rs 38,158 crore from the Indian stock market.

Fpi investment in June 2018.

Possible for the first time in 2018

If investor withdrawal continues throughout June, it will be the first time since 2018 that foreign investors will withdraw their money for three consecutive months in April, May and June. If we talk about the year 2018, foreign investors withdrew Rs 5,552 crore from the stock market in the month of April. 10,060 crore were withdrawn in the month of May and 4,831 crore in the month of June. The special thing is that that month not even the debt market was safe from foreign investors. During the first six months, foreign investors withdrew their money for five consecutive months, that is, from February to June.

Fpi investment in June 2018.

Bond and debt market conditions

On the other hand, if we talk about the bond and debt market, in the first week of June an investment of Rs 4,008 million was made. Before that, in the month of May, foreign investors had invested Rs 8,761 crore. In the current calendar year, April was the only month in which investors withdrew Rs 10,949 crore from the debt market. If we look at the current year, foreign investors have invested Rs 57,678 crore in the debt market.

what the experts say

VK Vijayakumar, chief investment strategist at Geojit Financial Services, said FPIs’ disappointment over Chinese stocks seems to be coming to an end and investment in Chinese stocks listed on the Hong Kong Stock Exchange is increasing. He said the valuation of Chinese stocks has become very attractive. On the other hand, some experts also say that the kind of mandate seen in India is not given to a single party. In such a situation, political stability can continue to increase. The effect of which can be seen in the stock market. Due to this lack of stability, investors are withdrawing their money.

Sagar Patel

Sagar Patel

I am Sagar Patel, specializing in business news reporting. With a keen focus on economic trends, market analysis, and corporate developments,

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