FPIs pull out ₹15,096cr from Indian market in 5 sessions
What's the story
Foreign Portfolio Investors (FPIs) have pulled out a staggering ₹15,096 crore from the Indian market over five trading sessions ending September 26. The bulk of this withdrawal, ₹12,734 crore, was from equities. This mass exit has led to a nearly 2.7% decline in both Nifty and Sensex for the week. The trend indicates rising concerns over global trade tensions and domestic challenges among foreign investors.
Market indicators
Quick exit from equities
FPIs, who are major players in the Indian market, have shown a quick exit from equities. This is seen as an indication of rising nerves over global trade tensions and local challenges. The rupee also weakened to 88.67 against the US dollar during this period, further hinting at caution among foreign investors.
Fund withdrawals
Mutual funds also withdraw investments
Not just FPIs, mutual funds have also withdrawn ₹608 crore, mostly from equity schemes. Global concerns such as new US H-1B visa limits and potential steep tariffs on Indian pharma brands are further spooking investors. The heavy FPI action in derivatives indicates more market swings ahead as uncertainty continues to loom over the Indian economy.