Foreign investors’ interest in the Indian stock market decreased, FPI investment declined, know the reason

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.

Large cap and mid cap stocks fall
According to the report, it has come down due to massive selling by foreign investors and fall in Indian stock markets. During the period under review, especially the stocks of large cap and mid cap (medium and small companies) saw a decline.

FPI share in domestic stock market declined by two percent in October-December
It said that the value of FPI investments in the Indian stock market declined by two per cent to US$654 billion at the end of the quarter ended December 2021, from US$667 billion in the previous quarter. The value of FPI investments in the Indian stock market at the end of December 2020 was USD 518 billion.

FPI contribution came down from 19 percent to 18 percent
Due to the fall in the period under review, the contribution of FPIs to the Indian equity 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.

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