Foreign investors withdrew 60 thousand crores in 2 months from stock market
Foreign Investors: During the huge turmoil that has been going on in the Indian stock market for many days, foreign institutional investors (FIIs) have given a big shock. In the last two months, foreign investors have sold the maximum stake in big companies of India. These investors have withdrawn more than Rs 60,000 crore from financial and IT stocks in just two months.
However, foreign investors' trust in small companies remains intact and they are withdrawing money from large caps and investing in mid and small caps.
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Foreign investors have sold stake in big companies of India
NSDL data shows that foreign institutional investors withdrew Rs 5,900 crore from financial stocks in July and Rs 23,288 crore in August. The condition of IT stocks was also similar. Investors sold Rs 19,901 crore stakes in July. This is because the IT sector is facing global challenges. This has further deepened the problem of weak earnings in the Indian markets. On the other hand, the difficulties of the financial sector are increasing due to domestic pressures.
FIIs changing strategy
Overall, FIIs have been consistent net-sellers so far in 2025. Apart from IT and financial sectors, these investors have also withdrawn money from oil-gas, power, consumer durables, healthcare, realty and FMCG stocks. According to Indian brokerage firm Angel One, FIIs are changing their strategy. They are selling stakes in largecaps and increasing them in select midcaps and smallcaps. Since September 2024, Indian stock markets have lagged behind emerging markets by 24 points, the main reason for which has been weak earnings. Sensex and Nifty have given negative returns in the last one year.
Rupee falls to new low
The Indian rupee fell to a new low of 89.3613 against the US dollar in afternoon trade on September 5. The reason for this was the withdrawal of foreign investors from the stock market and the pressure created by Trump's tariff policies. Meanwhile, there were also reports that the RBI intervened to stop the sharp decline. At the beginning of the day, the rupee opened at 88.1075 i.e. 5 paise stronger than the previous close price of 88.1525.
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