New Delhi: The equity index faces foreign outflows in five years, an exodus that stops the stable wave of the market from the lowest position of the pandemic in March 2020.
The investor of foreign institutions (FIIS) has become a clean seller every month since September, wasted $ 7.9 billion worth of shares Local since then.
The four-month withdrawal line is set to be the longest since January 2017, data compiled by Bloomberg Show.
The BSE Sensex benchmark fell by around 7% since hitting all time high hit in mid-October.
Selling has increased amid fears of recent global equity triggered by fears that the US Federal Reserve will tighten monetary policy than expected.
Foreign funds have sold more than $ 3 billion of shares this month until January 25, according to the latest data available, most since March 2020.
“Indian shares have outperformed the global index with a larger margin,” said Amit Kumar Gupta, a person Fund manager with ADROIT financial services Pvt.
“It makes sense for investors to take some money after an unprecedented rally.” Supercharged by low interest rates record and retail investment boom, Sensex more than double the value of the lowest position seen back in March 2020 – the best rally for each major equity benchmark.
Still rising around 120% of these levels, exceeding the MSCI All Country World index around 40 percentage points.
Foreigners held an 20.9% stake in NSE Nifty 500 company last month, the lowest since June 2020, according to Gautam Duggad, an analyst with Oswal Motoral financial services.
Their exposure to financial companies fell to 35% from 45.2% a year ago, Duggad wrote in a note.