Companies will soon start announcing their third quarter results, but before that foreign portfolio investors (FPIs) have taken a big step. Foreign investors have withdrawn Rs 4,285 crore from the Indian stock market (Stock Market News) in just three trading sessions. This information has been received from the depository data. Let us tell you here that earlier in the entire month of December, FPIs had invested Rs 15,446 crore in shares.

Why are foreign investors withdrawing money from the market?
In fact, the perception of FPIs has changed amid global and domestic challenges. On this, VK Vijaykumar, Chief Investment Strategist of Geojit Financial Services, said that as long as the US dollar remains strong and US bond yields remain attractive, FPI selling may continue. Investors are cautious, while Himanshu Srivastava, Associate Director-Managed Research, Morningstar Investment Research India, said that foreign investors have adopted a cautious stance ahead of the third quarter results of companies. Apart from this, investors are also cautious due to the possible policy of US President-elect Donald Trump and his impact on global markets. Investment of only Rs 427 crore in 2024 Overall, this trend reflects a cautious stance on the part of foreign investors. Foreign investors have made a net investment of only Rs 427 crore in Indian stocks in 2024, while in 2023, FPIs had invested Rs 1.71 lakh crore in Indian stocks and in the year 2022, FPIs had sold Rs 1.21 lakh crore. The fall in the Indian rupee against the US dollar has weakened the FPI sentiment as it has made Indian investment less attractive. Apart from this, there are fewer indications of interest rate cuts from the US Federal Reserve this year, which has shown its effect.