In January, FPIs withdrew Rs 64,156 crore from Indian equity markets
The exodus of FPIs from Indian equity markets continues unabated. In January so far, they withdrew Rs 64,156 crore ($ 7.44 billion).
The exodus of FPIs from Indian equity markets continues unabated. In January so far, they withdrew Rs 64,156 crore ($ 7.44 billion).
In January so far, foreign investors have withdrawn Rs 22,194 crore from Indian equities.
FPIs began the week on a positive note, investing Rs 3,126 crore in equities during the first two trading sessions between December 16-20.
As per NSDL data, FPIs were buyers of equity in the cash market on all days of the week.
In the fortnight of September, foreign investors have infused Rs 27,856 crore in domestic equities.
Foreign portfolio investors (FPI) invested Rs 43,838 crore in the Indian stock markets in May.
The sell-off by the FPIs in March is way more than they pulled out in January and February of Rs 33,303 crore and Rs 35,592 crore, respectively.
Surging reserves can be a double-edged sword as there is a cost to holding them. High reserves will obviously lead to appreciation of the currency and rise in inflation, because capital inflows that result in high reserves are used to buy domestic currency, thereby expanding the domestic monetary base without a corresponding increase in production, and this causes a rise in inflation.
This reflects steadfast confidence of foreign investors in the fundamentals of the Indian economy, the Ministry said in a statement.
For the write off, the process prescribed in the SEBI's operational guidelines has to be complied with.
