FPIs Sell ₹5,254 Cr in Indian Equities Amid US Bond Surge; Turn Net Debt Sellers
Foreign investors who invest in Indian markets have recently started selling more than buying. This change happened as the new fiscal year, 2024-25, began. In the past year, they were buying a lot, but now they are selling. Experts are worried that this trend might continue for a while because of some issues like changes in the tax agreement between India and Mauritius and problems in the global economy.
According to data from the National Securities Depository Ltd (NSDL), these foreign investors, known as FPIs, have sold Indian stocks worth ₹5,254 crore. This adds up to a total of ₹8,982 crore that they’ve taken out of the Indian market by selling different types of assets like bonds, mixed investments, and stocks. Most of the money they took out was from the bond market, with a total of ₹6,174 crore leaving since the month began.
This change in behavior is happening because there are a lot of uncertainties right now. In India, there’s concern about how changes to the tax agreement with Mauritius will affect foreign investors.
Internationally, there’s a lot of instability in markets, with things like political tensions and rising prices causing uncertainty. Because of this, investors are being careful and not investing as much as before.
In short, foreign investors are now selling more in Indian markets compared to before, and this is because of worries about changes in tax laws and global economic problems. These issues are making investors cautious, and it’s uncertain when they will start buying in India again.
