Share Market: Foreign investors disillusioned with Israel-Hamas war, Rs 9,800 crore withdrawn from Indian stock market
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Share Market: Due to rising bond yields in the US and uncertainty caused by the Israel-Hamas conflict, foreign portfolio investors (Foreign Portfolio Investment) has withdrawn Rs 9,800 crore from Indian stock markets so far in October. Earlier in September also, FPIs were net sellers and had sold shares worth Rs 14,767 crore. FPIs had been buying continuously during the last six months from March to August. During this period he had invested Rs 1.74 lakh crore in the stock markets. Kislay Upadhyay, small case manager and founder of Fidelfolio Investments, said that this inflow of FPI at that time was due to the decline in inflation in the US. The inflation rate in America had fallen from six percent in February to 3.2 percent in July. Apart from this, due to the Federal Reserve not increasing interest rates during May to August. FPI inflows Had increased.
What is the expert’s opinion regarding the market?
Himanshu Srivastava, Associate Director and Manager Research, Morningstar India, said that going forward, FPI investments in Indian markets will be affected not only by global inflation and interest rates, but also by the Israel-Hamas conflict. He said that geopolitical tension is a risk due to which the flow of foreign capital in emerging markets like India can be affected. According to depository data, till October 13 this month, FPIs have sold shares worth Rs 9,784 crore. VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said that the main reason for the selling by FPIs is the continuous increase in bond yields in America. During the period under review, FPIs have invested Rs 4,000 crore in the country’s bond market. With this, the total investment of FPIs in shares so far this year has exceeded Rs 1.1 lakh crore and in the bond market has exceeded Rs 33,000 crore.
What is a foreign portfolio investor?
Foreign portfolio investors are individuals or organizations that deploy their financial resources in foreign investments. They invest their money in various foreign financial instruments, such as stocks, bonds, foreign exchange markets, and other financial instruments. The objective of foreign portfolio investors is to increase their investment horizon, increase financial diversification and maximize returns. They finance their portfolios across different sectors and in different foreign financial instruments so that there is a possibility of favorable earnings. These investors have a special approach to investing in foreign currencies in foreign markets. They study events happening around the world, political events, and economic signals so that their investments are prudent. As part of some operations, foreign portfolio investors may partner with investment companies, hedge funds, and other foreign investors to make prudent investment decisions. Foreign portfolio investment can help them navigate various foreign markets and be a companion in making their investments judicious.
How do foreign portfolio investors invest in India?
Foreign Portfolio Investors In India, foreign investors are the first to make plans. This plan takes into account your goals, financial situation and investment period. Contact a financial advisor who can help with foreign investments. It is important to get the right advice for foreign investments. Study different foreign markets and financial instruments so that you can make your investments judiciously. There are various options for foreign investment such as investing in foreign shares, bonds, mutual investment funds (FIIs), foreign commercial issues (ADR), and foreign exchange markets. To open a foreign investment account, contact a foreign bank or financial institution. It is important to keep an eye on the progress of your foreign investments and make adjustments as per requirement. Follow best investment practices to protect foreign investments.
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