FPI has removed 18,000 crore from the stock market so far in August, why is foreign investors selling?
Foreign Portfolio Investors (FPI) In August, he has withdrawn around Rs 18,000 crore from the Indian stock market so far. With this, in the year 2025, the total equity withdrawal of FPI has reached Rs 1.13 lakh crore. According to data received from depository, between August 1 to 8, the FPI pure Rs 17,924 crore from the Indian equity market. Earlier in July too, he did a net withdrawal of Rs 17,741 crore. However, in the period from March to June, the FPI invested Rs 38,673 crore. Market expert says that foreign investors are withdrawing money from the Indian stock market due to trade war with the US, weak results of companies in the first quarter and fall in the price of rupee.
America imposed heavy tariff on India
Himanshu Srivastava, co-director and research manager at Morningstar Investment Research India, said that the main reason for the recent withdrawal is the growing trade tension, weak quarterly results and weakness in rupee. At the end of July, the US had announced a 25 percent fee on Indian goods. Last week, he also imposed an additional 25 percent fee which created an atmosphere of nervousness and selling in the markets.
Selling can continue even further
Waqar Javed Khan, senior analyst at the brokerage firm Angel One, said the situation shocked the notion of FPI and investors adopted a strategy to stay away from risk. He also said that foreign capital is flowing towards the US even due to increasing the US bonds. However, during the period under review, FPI invested Rs 3,432 crore in the general loan limit and Rs 58 crore in the voluntary duration investment route (VRR). Khan warned that the trend of FPI may remain weak even further and business talks and fees disputes will be the major factors to decide the direction of the market in the coming week.
Latest business news
