Bad news for India! foreign investors sell Rs 270000000000 of shares in just…, due to…
Foreign investors are constantly withdrawing from the Indian stock market. In the last nine trading sessions, they have sold shares of Rs 27000 crore. Another concerning factor was the long-to-short ratio for foreign investors has gone down to 0.11 down. It was 0.61 lowest level in March 2023. This time it has declined far more than two years ago. This means that 90% of the trades by foreign investors are sell orders. Why Are Investors Selling Shares?
There are several reasons behind foreign investors exit from Indian markets: Weak Q1 Results: The first-quarter financial results of many Indian companies didn't meet expectations which reduced investor confidence. Trump's Tariff Shock: Former U.S. President Donald Trump announced a 25% tariff on goods imported from India. This has affected foreign investors. Strong U.S. Dollar: The U.S. dollar has strengthened recently which has made India a less attractive market for them. The dollar index has declined the 100 mark, with a 2.5% gain this week alone and its best performance in the last three years.
After Trump's tariff announcement on Wednesday, the Indian markets reacted on Thursday. Foreign Institutional Investors (FIIs) pulled out Rs 5,600 crore in a single day. Already concerned by weak corporate earnings, investors started to sell, with sell-side deals making up 90% of their trades and comparable to the 89% seen in January.
(Disclaimer: The information provided in this article is for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)
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