In the month of October, the selling done by foreign investors has reached record levels. According to the data, foreign investors have sold assets worth Rs 94000 crore last month which is equivalent to more than $11 billion. The main reason for the selling by foreign investors is the Indian markets reaching record levels and the Chinese markets' valuation being attractive along with the announcement of a relief package by the Chinese government. For this reason, foreign investors are withdrawing their money and investing in other markets.

However, according to Anuj Singhal, Managing Editor of CNBC Awaaz, even though this amount of investment withdrawal looks very large in figures, but this amount is very small compared to the total investment of foreign investors in India, due to which it should not be assumed that foreign investors are exiting the domestic market. According to the amount withdrawn by foreign investors, there has been a record outflow in the month of October. Earlier in March 2020, foreign portfolio investors had withdrawn equity equivalent to Rs 61973 crore from domestic equity. However, in September itself, foreign investors had invested Rs 57724 crore in the Indian stock market. Which was the highest level of the last 9 months. FPIs have been buying in the Indian markets since the month of June. Earlier in April and May, FPIs had withdrawn Rs 34252 crore from the market. Amid the selling by foreign investors, the major indexes have fallen 8 percent from their record high levels. At the same time, according to Anuj Singhal, Managing Editor of CNBC Awaaz, the value of FII investment in the Indian stock market is Rs 68 lakh crore. That is, foreign investors have sold only 1.5 percent stake. According to them, phases of sharp selling and sharp buying keep coming, but this should not mean that foreign investors are now staying away from the domestic market.