FPI: There was a slowdown in the withdrawal rate in October, FPI has already withdrawn 1,586 crores from the stock market, experts say.


FPI: FPI withdrew Rs 1,586 crores from shares through October 28, according to depository records. There is only one trading session left this month.

The rate of exit of foreign portfolio investors (FPIs) from Indian stock markets slowed down somewhat in October. After withdrawing Rs 7,600 crore from equities in September, FPI removed Rs 1,586 crore from the capital markets this month. FPI’s net purchase in August was Rs 51,200 crores. K. Dilip, head of PMS, Geojit Financial Services, said FPI net inflows in November will be mostly around that figure. As of October 28, the FPI has withdrawn Rs 1,586 crore from shares, according to depository data. There is only one trading session left this month. However, the pace of FPI sales in Indian markets has slowed in the last few days. In fact, he has been a Rs 6,000 crore buyer in the last four trading sessions.

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Expert opinion

Himanshu Srivastava, Associate Director of Research at Morningstar India, said: “The possibility of an aggressive interest rate hike by the US central bank, the depreciation of the rupee, fears of a recession and war between Ukraine and Russia have led foreign investors to enter the Indian stock markets. The flow will be negative. In this scenario, there was an environment of uncertainty that made investors hesitant to take risks.” Apart from India, FPI also exited the Philippines and Taiwan markets this month.

Capitalization of the top 10 firms: The market capitalization of 9 of the top 10 companies increased by 90,319 crores, with Reliance Industries winning the most.

This year, the seizure rate reached 1.70 crores.

Shrikant Chauhan, Head of Equity Analysis (Retail) at Kotak Securities, said that due to the high cost of capital and the current geopolitical crisis, FPIs were sellers in October. Earlier in July, FPI invested around Rs 5,000 crore in Indian equities. Previously, FPI had been net sellers for nine consecutive months since last October. FPI outflow reached Rs 1.70 crore this year.



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