FPI continued selling in November, shares worth more than Rs 3400 crore sold in the first three trading sessions

In the first three trading sessions of November, foreign portfolio investors (FPIs) continued selling from the stock market as before. In the trading session of November 1, 2, and 3, FPIs have withdrawn more than Rs 3,400 crore.

If we talk about the previous months, FPIs have withdrawn a total of Rs 24,548 crore in October and a total of Rs 14,767 crore in September. According to depository data, FPIs sold shares worth Rs 3,412 crore during November 1-3. FPIs have been selling since the beginning of September.

However, before the withdrawal, FPIs had been continuously buying in the stock markets in the last six months from March to August and during this period FPIs had invested about Rs 1.74 lakh crore.

According to experts, the main reasons behind the selling are the ongoing war between Israel and Hamas and American bond yields.

"The main reason for this is the significant rise in US treasury bond yields along with rising geopolitical tensions due to the conflict between Israel and Hamas," Himanshu Srivastava, associate director - manager research, Morningstar Investment Advisors India, told news agency PTI. "

There are now fewer chances of FPI withdrawal from the Indian stock market after rising bond yields and the US Federal Reserve indicated a dovish stance in its November meeting.

According to the data, after receiving Rs 6,381 crore in October, Rs 1,984 crore came into the debt market during the period under review.

With this, so far this year the total investment of FPI inequity has reached Rs 92,560 crore, and in the debt market has reached Rs 37,485 crore. Talking about sectors, mid-caps in banking, automobile, capital goods, and IT and real estate are set to perform well.