New Delhi. The eyes of foreign investors are seen moving from the Indian markets in March. Foreign investors have pulled out a hefty amount in the first week of March. According to the data, foreign portfolio investors have withdrawn Rs 5,156 crore from Indian markets. FPIs were net investors in the Indian market during the last two months. Let us tell you that due to the rise in bonds in the US and profit booking, foreign investors pulled out the rupee.
According to the depository data, from March 1 to 5, FPIs have netted Rs 881 crore from the stock markets and Rs 4,275 crore from the debt or bond markets. Thus his net withdrawal has been Rs 5,156 crore. Earlier in February, FPI invested Rs 23,663 crore in Indian markets and Rs 14,649 crore in the month of January.
The main reason for profit booking
According to experts, the reason for the withdrawal of FPI is the recovery of profits by investors due to the market reaching an all-time high. Apart from this, FPI investment in stocks was also affected due to increase in yield on bonds and inflation. The main reason for the withdrawal of FPIs in March is the increase in bond yields in the US and the strengthening of the dollar index. Whenever the yield on bonds increases in the US, a similar trend is seen.
There was a boom in the market in the last week
The domestic stock market recovered strongly early in the week on recovery in the economy and positive global cues from the country’s GDP data, while the last two sessions witnessed a sharp decline, yet the Sensex and Nifty rose by more than 2.5 per cent weekly. Closed with. The Sensex closed at 50,405.32, a rise of 1,305.33 points or 2.66 per cent over the previous week. At the same time, the Nifty 50 closed at 14,938.10, up by 408.95 points, or 2.81 per cent, compared to the previous week. The BSE Midcap index closed at 20,587.80, up 609.15 points or 3.05 per cent from the previous week. At the same time, the Smallcap index closed at 20,936.02, up 780.67 points or 3.87 percent over the previous week.