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FIIs have started withdrawing their money from India. They are now investing their money in China. If we look at the figures, it is clear that FIIs have sold heavily in India.


This is the highest in 4 years. In one day i.e. on 3 October 2024, FIIs sold shares worth Rs 15,243 crore in 6 hours. However, experts say that the fundamentals of Indian markets are strong. Growth in the economy continues. Therefore, FIIs will have to return.

What did FIIs do? Delivery based selling
 

share sold on 3rd October
relianceSold shares worth Rs 4,451 crore
HDFC Bank LtdSold shares worth Rs 3,718 crore
ICICI BankSold shares worth Rs 1,745 crore
Axis BankSold shares worth Rs 1,700 crore
Tata MotorsSold shares worth Rs 1,480 crore

 

When?Sell-off
17 JanuarySold shares worth Rs 10,578 crore
18 JanuarySold shares worth Rs 9,901 crore
4 JuneShares worth Rs 12,436 crore sold
5th AugustSold shares worth Rs 10,073 crore
30 SeptemberShares worth Rs 9,791 crore sold


 Why has FIIs suddenly moved towards China? China's markets have cheap valuations. The economy has received a big relief package. Along with this, the realty sector has also received a big push. China has made loans cheaper. Due to all these reasons, the sentiments have strengthened.

When will FIIs break up with China? - Rajiv Jain of GQG Partners says that in the last 3 years, we have seen enthusiasm among FIIs regarding China many times. Short term trading party in China is fine. But can one really invest with a 3-5 year perspective?

Citi's report on rotation from India to China - CSI300 index has jumped 24% in a week. Many policies were announced in China last week. Better returns are expected from China than India this year. But - Investment in India will continue due to strong macro and better growth expectations.

But investing in China is not easy? - Gevkal Research says that foreign investors avoid investing in China. China's problems are opportunities for us. It is too early to think that India's bull market will stop.

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