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Global Trade War: What has the US imposed heavy tariffs on China, Mexico and Canada, the threat of trade war has started looming around the world. Foreign investors of India are also scared by this. In the first week of February, foreign portfolio investors have sold shares of 7,342 crores. Earlier in January, the FPI had withdrawn Rs 78,027 crore from Indian markets, while in December, he invested Rs 15,446 crore. According to experts, foreign investors are monitoring the market situation in India due to the global factor.
FPIs are not raising the risk of investment from global abundance
Stock market experts say that due to uncertainty in the global factor, foreign investors have opted not to take risks. Due to this, they are withdrawing from emerging markets like India. Indian currency has also come down from 87 rupees per dollar for the first time. Due to weakness of rupee, the profit of foreign investors decreases and investment in Indian is not beneficial for them. It is also forcing FPI to sell.
Further foreign investors may be confident further
Experts at the stock market believe that FPI selling is expected to decrease due to steps taken by the Government of India and the Reserve Bank. The major reason for this is also a softening trend in the dollar index. American bonds are also showing weakness now. Apart from this, foreign investors in the Indian stock market will also depend on economic growth and improvement in income of companies. It may be noted that FPI had invested a net investment of only Rs 427 crore in Indian stocks in 2024. Earlier in 2023, Rs 1.71 lakh crore was made pure invested.
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