Foreign investment continues to flow out of India’s markets. As the war involving the US, Israel, and Iran began in West Asia, the global market situation has become unstable. The rupee has also witnessed a significant decline during this period. In this situation, Foreign Portfolio Investors have been continuously withdrawing money from India’s stock market.
In March, the outflow reached record levels. Even in the first two trading sessions of April, this trend has not ended. According to NSDL data, foreign outflow has continued for 23 consecutive trading sessions.
Also Read | Good Friday holiday for markets? Check what's open and closed today
In March this year alone, Foreign Portfolio Investors (FPI) withdrew ₹1.17 lakh crore from India’s stock market. This is the highest FPI withdrawal in a single month. Although foreign investment has been flowing out over the past year, such a massive outflow in any single month has never happened before. This means an average of ₹6,198 crore of foreign investment flowed out daily from India’s markets in March.
Record March outflow and continued April trend
Previously, the highest foreign investment outflow in a single month was in October last year. In that month, ₹94,017 crore of investment flowed out. March’s outflow has surpassed all past figures.
This trend continues in April as well. In the first two trading sessions of April alone, ₹19,837 crore of investment flowed out. As a result, the total foreign outflow since March stands at ₹1.37 lakh crore. Market analysts say volatility and the strengthening US Dollar Index are the main reasons for this outflow.
{News Ei Samay does not provide investment advice. Investment and trading in the stock market or any other field involve risk. Proper study and expert advice are recommended beforehand. This news is published for educational and awareness purposes.}
