FPI sold shares for Rs 977 crore, resulting in a negative net investment; Know why the selling happened
FPI: According to NSDL data, FPIs have sold shares worth Rs 977 crore from the Indian markets this week. Due to this, their investment has come down. However, their entire investment this month is still positive.
Foreign portfolio investors (FPIs) in the Indian stock market sold shares worth Rs 977 crore this week that made their total investment negative. This information was shared in the data of National Security Deposit Limited (NSDL). However, their investment this entire month is still positive, which shows their confidence in India's economic growth.
This week, between 16 and 20 December, FPIs initially bought shares worth Rs 3,126 crore. The purchase of shares by them was very strong in the first two days. But after this, in the next three days, FPIs sold shares worth Rs 4,103 crore, making their total investment negative.
Despite this sell-off, FPIs have invested Rs 21,789 crore in Indian stocks so far in the month of December, thus showing their confidence in the growth of the Indian economy.
According to experts, this sell-off happened because of some events in the global market. Many investors pulled out their money due to the increase in interest rates in the US and the strength of the US dollar. Besides this, profit booking after the recent rise in the market can also be a reason.
Banking and market expert Ajay Bagga said, there was an atmosphere of risk aversion in the global markets this week. Due to the strength of the dollar and rising interest rates in the US, FPIs pulled out money from emerging markets like India. FPIs sold shares worth Rs 21,612 crore in November, which was much less than the sell-off of Rs 94,017 crore done in October.
