Foreign investors are fleeing the indian market!
Amidst the falling stock market of india and the falling value of the rupee, there is a rush among foreign investors to leave India. In this stampede, foreign portfolio investors have sold shares worth Rs 19,759 crore in a week. Foreign investors have returned after collecting money from shares worth this much from the indian stock market between january 20 and january 24. This is revealed by the data of NSDL. Even in the month of january, foreign portfolio investors have withdrawn Rs 64,156 crore so far. Even after this, the pace of foreign investors withdrawing money from the indian stock markets has not stopped yet.
Is it the result of Donald Trump's return?
This kind of selling and running away of foreign investors from the indian stock market is being linked to the return of Donald Trump. This has increased the confidence of investors in the American economy. Donald Trump's promises of improving the lives of the average American have made the US a more preferred destination for investment. The increase in interest rates on US Treasury bonds and the strength of the US dollar have also led to the return of funds to the US. This is why global investors are appealing to withdraw money from emerging markets like India.
Deep wound to the rupee
Due to such a large scale withdrawal of money by foreign investors, the stock market is falling and it is also deeply wounding the rupee. The rupee is continuously losing ground against the dollar. It has become like a cycle that the rupee is weakening due to the selling by foreign investors and due to the weakening of the rupee, foreign investors are withdrawing money.
Because the higher valuation and slow growth due to the weakening of the rupee is forcing foreign investors to withdraw from the indian market. This has raised concerns for the indian economy on a large scale. If the attitude of foreign investors remains the same due to global factors, then indian investors will also be forced to look towards the development of American economy or other big economies for investment.
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