Huge withdrawal of foreign investors from indian stock market..!?

 The huge withdrawal of foreign companies and investors from the indian stock market in the past month has come as a shock. Foreign investment firms withdrew Rs 94,000 crore from the indian stock market in October. For the month of october, the indian stock market was volatile. In particular, foreign investment companies have sold their huge holdings in the indian market. In october, foreign investors and investment firms sold shares worth Rs 94,017 crore in the indian stock market. Market analysts say this is more than ever before. october is the month in which foreign investors sold the most stocks this year. It has been revealed that foreign investors have invested money taken from the indian stock market in Chinese companies in the Chinese stock market. Prior to this, foreign investors had withdrawn a maximum of Rs 61,973 crore from the indian stock market in march 2020.
Last september alone, foreign companies had invested the highest amount of Rs 57,724 crore in the indian stock market this year. Currently, foreign companies are changing their investment trends due to international central banks adjusting interest rates, the gradual recovery of the Chinese economy, the US presidential election, and the conflict between iran and Israel. According to investment market experts, it will be known whether further foreign investments in india will increase or withdraw depending on the results of the US presidential election. Benchmark indices have seen a decline of up to 8% from their peak as foreign investors sold their shares in the indian market. One of the reasons is that the stock values of various companies from india are overvalued. Thus foreign companies follow the policy of selling in india and buying in China. Recently, the Chinese government has announced various measures to boost the economy. It is seen as a positive move. Therefore, foreign investors believe that the Chinese market will grow faster than the indian market. Experts say that while foreign companies are selling large volumes of shares, local mutual funds and other companies have invested in stocks in return and the number of retail investors is also increasing.
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Sowmiya Sriram

04/11/2024 09:57 AM