New Delhi: Foreign Portfolio Investors (FPIs) are continuing to sell in the Indian stock market. This is the reason why the BSE Sensex fell to around 81,000 points after touching the level of 85,000. Let us know why FPIs are selling in the Indian markets, how many shares have they sold now and will this trend continue?

How much have FPIs sold?

According to data from the National Securities Depository Limited (NSDL), FPIs have sold shares worth Rs 58,711 crore from the Indian markets in the eight trading sessions of October. This is the highest sale so far in any single month of 2024. In October, FPIs have sold shares every day.

Record purchase was made in September

According to the data, FPIs have sold shares worth Rs 31,568.03 crore in five trading sessions during October 7-11. Earlier in the week, FPIs had sold shares worth Rs 27,142.17 crore during three trading sessions. In September this year, FPIs had bought shares worth Rs 57,724 crore, which was the highest purchase in a month during 2024.

How much is the investment of FPI now

FPIs have made a massive sell-off in the Indian markets in October. Due to this, the net investment of FPIs in equity markets has come down to Rs 41,899 crore. Apart from equity, FPIs are also withdrawing from debt or bond markets. According to NSDL, till October 12, FPIs have withdrawn Rs 1,635 crore from the debt markets, whereas in September they had made a net investment of Rs 1,299 crore.

Why are FPIs focusing on selling?

There are many reasons for FPIs selling in the Indian market. One is that the valuation of the Indian market is very high. The quarterly results of companies are also coming weak, which are not able to justify their valuation. Also, China has announced financial incentives for its real estate sector. The valuation of its market is also very attractive. That is why FPIs are selling in India and going to China.

What is the impact of FPI withdrawal

FPI selling has not had much impact on the Indian market so far, because mutual funds are balancing the selling with heavy buying. Mutual funds have invested Rs 57,792 crore so far in October. Apart from this, other categories of domestic investors have made purchases worth Rs 11,633 crore. Due to this, the impact of FPI selling on the overall market is not as much as it would have been in normal circumstances.

What is the expert's opinion on selling

Stock market experts say that FPIs are currently investing in Chinese shares, which are still cheap. The financial incentives of the Chinese government have made it even more attractive. However, experts also say that India now has better growth prospects than China. Therefore, India also deserves higher valuations. FPIs will have to turn back to the Indian market sooner or later.