..So because of them your money sank in February? These are the biggest villains of the stock market

The month of February has been no less than a big storm in the Indian stock market. The stock of market giant Adani Group has fallen on its face this month. But the biggest villains of the market have emerged as Foreign Portfolio Investors (FPIs). FPI, which is called the backbone of the stock market, has done a bumper sale in February and has withdrawn Rs 9600 crore from the stock market. Let us tell you that the selling of foreign investors from the stock market has been going on since the beginning of last year. Although there was some improvement in this in November, but since then the flow of foreign investors has continued.

Foreign investors have pulled out over Rs 9,672 crore so far this month, given the high valuations of the Indian equity market compared to other emerging markets, according to stock exchange data. In January too, FPIs made a net withdrawal of Rs 28,852 crore. Depository data showed that this was the highest withdrawal in the last seven months. Earlier, foreign investors had made a net investment of Rs 11,119 crore in December 2022 and Rs 36,238 crore in November in the Indian market.

what the experts say

Shrikant Chauhan, head of equity research (retail), Kotak Securities, said FPI capital inflows are likely to remain volatile even as central banks continue to hike interest rates. Himanshu Srivastava, Associate Director (Research), Morningstar India, said, “I expect this trend of capital outflows to continue until there is more clarity on the Adani issue, more stability in the market and FPIs get a better view of the Indian economy.” There are more concrete signs of

Investors leaving India going to Taiwan and Japan

Comparatively high valuation of Indian markets is also a major reason for this withdrawal of foreign capital. He said capital taken out of Indian markets is being deployed in markets like Taiwan, South Korea and Japan. Srivastava said that after the removal of strict lockdown in China, the attention of foreign investors has once again shifted there. The sharp fall in Chinese markets following the imposition of a harsh lockdown has made them more attractive in terms of value.

Which stocks sold the most

VK Vijayakumar, chief investment strategist at Geojit Financial Services, said foreign investors were buying in auto & components, construction and metals & mining stocks, while they continued to sell in financial services. At the same time IT shares are also attracting them. On the other hand, FPIs have invested Rs 2,154 crore in the Indian debt markets during the period under review. FPI inflows into emerging markets have been mixed so far this month. Foreign capital was withdrawn from India, Thailand and the Philippines while South Korea, Taiwan and Indonesia attracted foreign investment.

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