New Delhi. The trend of selling of Indian shares by foreign portfolio investors (FPI) continues. So far in November, FPIs have sold shares worth Rs 26,533 crore. The Indian stock market has declined for the last few days due to heavy selling by FPIs. However, on Friday, despite the selling by FPIs, Sensex and Nifty rose sharply. So far in the year 2024, FPIs have sold Indian equities worth Rs 2.94 lakh. On the other hand, domestic institutional investors have bought shares worth Rs 5.62 lakh crore during this period. Foreign investors are withdrawing money from the Indian market and investing in the Chinese market.

In October, FPIs sold shares worth Rs 94,017 crore, while in September they bought domestic equities worth Rs 57,724 crore. In August this year, FPIs bought shares worth Rs 7,322 crore, which was less than the purchase of Rs 32,359 crore in July. In June, FPIs were net buyers of Rs 26,565 crore, but in April and May, they sold shares worth Rs 8,671 crore and Rs 25,586 crore, respectively. In February and March, FPIs bought shares worth Rs 1,539 crore and Rs 35,098 crore, respectively. In January, they started the year in the negative by selling shares worth Rs 25,744 crore.

Shares sold on Friday too
Foreign institutional investors (FIIs) were net sellers of Rs 1,278.37 crore on Friday. In contrast, domestic institutional investors (DIIs) emerged as net buyers of Rs 1,722.15 crore. VK Vijaykumar, Chief Investment Strategist of Geojit Financial Services, has given three main reasons for the selling of FPIs. He says that the first reason is the trend of 'Sell India, Buy China'. However, now it is almost over. Second, there are concerns about the potential corporate earnings of FY 2025. The third reason is the effect of the 'Trump Business', which is in its final stage due to high valuation in the US.
Vijaykumar expressed hope that the FPI selling may stop soon as the valuation of large-cap stocks has come down from its earlier highs. He also said that the purchase of IT stocks by FPIs has given stability to this sector. At the same time, the purchase of domestic investors (DIIs) has had a positive impact on banking stocks .