Foreign Investors Outflow: Foreign investors are continuously reducing their confidence in the Indian domestic stock market. Foreign institutional investors i.e. FIIs have been continuously withdrawing money from the Indian stock market for the last few days. This process of selling continues in the month of December also.
If we talk about the figures, in the month of December, foreign investors have withdrawn about Rs 22,864 crore from the market. The effect of this selling by FIIs has been seen in the stock market. Shares of many sectors have faced tremendous pressure. However, domestic investors have definitely helped in reducing the impact of this sale.
IT and services sectors remain under pressure
Foreign investors are avoiding placing their bets on IT and services sector. Talking about the last 2 weeks, foreign investors have withdrawn about Rs 3,300 crore from these two sectors. However, in the case of the month of November, there has been a decrease in the sales of shares.
Huge withdrawal from the financial sector
The selling by foreign investors had the biggest impact on the financial services sector. In the first two weeks of December alone, FIIs withdrew more than Rs 6,500 crore from this sector. This pressure continued even in the month of November. But the withdrawals increased further in December, the effect of which was clearly visible in banking and financial stocks.
Foreign investors have made huge sales in the power sector including healthcare. More than Rs 2,100 crore has been withdrawn from the power sector and about Rs 2,350 crore from healthcare. Pressure is also being seen in the FMCG sector. However, foreign investors have sold slightly less than in November.
Amidst the selling by foreign investors, domestic institutional investors have expressed their confidence in the market. Which has helped in controlling the decline in the market to some extent.
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