Foreign portfolio investors have withdrawn ₹26,533 crore from the Indian market so far this month. The reasons for this are being attributed to the growing trend towards China, sluggish quarterly performance of companies and expensive valuation of stocks in the domestic market. However, after the recent correction, it is now being said that valuations in the Indian stock market have remained cheap.

On one hand, the selling continues in the market, while the pace of FPIs' selling has slowed down as compared to October. FPIs sold shares worth a net ₹94,017 crore in the month of October. With this, the outflow figure of FPIs is now ₹19,940 crore so far this year.

Himanshu Srivastava of Morningstar Investment Research says that going forward, the outflow from foreign investors in the domestic market depends on how Donald Trump's policies are, the inflation figures and the situation of geopolitical uncertainties. Apart from this, they will also keep an eye on the performance of companies in the third quarter. According to the data, till November 22, FPIs have sold a net ₹26,533 crore. The month of October was the worst in terms of FPIs selling. This figure of selling in October was ₹94,017 crore. However, an inflow of ₹57,724 crore was also seen in the month of September, which was the highest in the last 9 months. He said that the concern about the valuation of Indian equities still continues to some extent. This is the reason why FPIs are turning towards markets with cheap and attractive valuations. Apart from this, a large part of the investment in India is also seen going to the Chinese market. The government there has also announced relief measures to revive the economy. During the second quarter of the current financial year, there has also been a slowdown in the results of companies. VK Vijaykumar, Chief Investment Strategist of Geojit Financial Services, said that investors are worried about the results of the financial year 2025. He said that the strategy of Sell India, Buy China is now over. After Trump's victory, the wave of boom in the US market is also almost subsiding. The valuation in the markets here has now reached the upper level. If we look at the sector, then buying has been seen in IT stocks by FPIs. Whereas, banking stocks have shown some resilience even after the sell-off. These stocks have received a lot of support from domestic investors.