Foreign investors’ interest in Indian stock market decreased
FPI Investment Reduced: According to the report, the interest of foreign investors in the Indian market has decreased and for this reason the share of FPI has come down to US$ billion in the October-December quarter.
FPI Investment Reduced: The share of foreign portfolio investors (FPIs) in the domestic stock market declined by two per cent to USD 654 billion during October-December 2021. This has been said in the report of Morningstar. This clearly shows the declining interest of foreign investors in the Indian market.
According to the report, large-scale selling by foreign investors and a fall
in the Indian stock markets has reduced it. During the period under review, especially the stocks of large cap and mid cap (medium and small companies) saw a decline.
FPI share in the domestic equity market declined by two per cent in October-December,
it said, adding that the value of FPI investments in the Indian stock market declined by two per cent to USD 654 billion at the end of the quarter ended December 2021, from 667 billion in the previous quarter. billion US dollars. The value of FPI investments in the Indian stock market at the end of December 2020 was USD 518 billion.
Contribution of FPIs declined from 19 per cent to 18 per cent
Due to the decline in the period under review, the contribution of FPIs to the Indian stock market capitalization declined to 18.3 per cent from 19 per cent in the quarter ended September 2021. The market capitalization has also been affected due to the decreasing investment of foreign investors during this period. The domestic stock market is currently also facing the effects of the Russia-Ukraine war, but due to its impact, while the market is falling, on the other hand, new foreign investors are expected to come to the Indian market because there are many economic sanctions on Russia. Huh.