Mumbai: The current financial year has been very poor in terms of FII outflow from the Indian equity market, foreign institutional investors (FIIs) have continued selling in the country’s stock markets since October of the current financial year. In the current financial year, cash sales of equity of foreign investors have crossed Rs 4 lakh crore.
In the first eleven months of the current financial year, so far, the cash of foreign investors in Indian equity has been sold for more than Rs 4.23 lakh crore. In the last financial year ie FY 2023-24, a net sale of Rs 14,395 crore was made by foreign investors.
The December quarter of the current financial year saw a major improvement in the Indian stock markets. The benchmark Sensex declined by 7.30 per cent and the Nifty 8.30 per cent, the largest quarterly decline since the June 2022 quarter.
In the US, in addition to tariff war under the new President Donald Trump, there is a selling in the equity market due to fears of trade disruptions. In addition, the mood of foreign investors has also deteriorated due to indication of interest rate cuts by the US Federal Reserve.
Many rating agencies have reduced the country’s economic growth estimate for the current financial year, indicating the overall economic situation of the country. Foreign investors are investing money in the primary market despite selling in secondary market, but this amount is very modest.
Market sources believe that foreign investors are continuously selling due to the strengthening of the dollar. FIIs continue to sell in recent times due to strength in the dollar index and high returns on American bonds.
