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Foreign Institutional Investors (FII) withdraws Rs 34,574 crore from Indian stock markets in February. At the same time, in the first two months of 2025, in January and February, FII sold total of Rs 1.12 lakh crore. In January, FII sold shares worth Rs 78,027 crore.
According to experts, FII is constantly withdrawing money due to concerns about high valuation of Indian shares and growth in corporate income. In December 2024, FII invested Rs 15,446 crore in Indian stock markets.
Investors’ attention is moving towards American assets
The main reason for the recent market of the market is the increase in bond yields in the US, strengthening US dollars and global economic uncertainty. Due to this, the attention of investors is moving towards American assets. In the third quarter of Finance-year, companies have been weak, which reflects an atmosphere of uncertainty.
FII selling due to high valuation in India
According to market experts, FII is selling in India due to high valuation. They are investing their money in Chinese shares, where the valuation is low. Not only this, FII is selling massively in financial services, while this sector is performing well and its valuation is attractive.
FII is also withdrawing money from date and bond market
Apart from this, FII is also withdrawing money from date or bond market. In the month of February, FII withdrawn Rs 8,932 crore from Bond Bazaar under General Limit and Rs 2,666 crore from the volunteer retention route.
FII’s investment in the Indian market in 2024 was Rs 427 crore. Earlier in 2023, FII invested Rs 1.71 lakh crore. In 2022, FII withdrew Rs 1.21 lakh crore from the Indian market.
