New Delhi. This time again the actions of foreign investors have entangled the entire market. There was a brief respite in October, when suddenly FPIs i.e. foreign portfolio investors surprised everyone by investing Rs 14,610 crore. It seemed that now foreign money is back on track. But as soon as November started, the situation changed again. By withdrawing Rs 3,765 crore in one go, foreign investors made it clear that the fear in the global market is not over yet. The environment is such that some days buy, some days sell – that means no definite direction is being made.
The atmosphere at the global level remained rough from the beginning. In America, this dilemma as to what the Federal Reserve will do, cut or make to wait has taken away the courage to take risks. On top of that, a strong dollar, weak tech stocks and volatile crude oil prices. There was fear in the market, and as always happens, foreigners take the first flight out of fear. The same thing is told by Himanshu Srivastava of Morningstar who said that the impact of global risk-off on emerging economies is clearly visible.
sector wise loss
According to Vaqarjaved Khan of Angel One, IT, consumer services and healthcare sectors were hurt the most in November. When there was a stir in global tech, its direct impact was visible on Indian tech stocks. Many FPIs thought it best to lighten their entire portfolio by withdrawing money from these sectors.
Mixed signals in the market
But this whole story is not negative. VK Vijayakumar of Geojit Investments believes that no clear trend is emerging yet. Some days FPIs seem to be making good purchases, and some days there is sudden selling. That is, at present foreign money is moving depending on the direction of the wind.
Meanwhile, the domestic market also showed a spectacular spectacle. On November 27, after 14 months, both Nifty and Sensex made new records. Good Q2 results and expectations of better performance in Q3 and Q4 kept domestic traders bullish. That means FPIs may have exited, but domestic investors took over the baton.
what will happen in december
The market is now focusing on two big things. First, which way will the Federal Reserve go in America. Second, how much progress is made in the trade pact between India and America. Khan of Angel One says that the FPI trend of December will be completely decided by these two global decisions.
Overall, so far in 2025, FPIs have withdrawn Rs 1.43 lakh crore from Indian equities. The picture is a little different in the debt market. An investment of Rs 8,114 crore has been made here under the general limit, but an outflow of Rs 5,053 crore has also been recorded through the voluntary retention route.
Confused Foreigner
The gist of the story is that foreign investors are still in confused mode. Market sentiment is strong, domestic signals are good, but not even a valuable analyst in the world is able to predict which way the global wind will blow. The market is still running in this excitement. Strong selling by foreign investors in November: Withdrawal of Rs 3,765 crore due to US Fed dilemma, fluctuations in global tech and inclination towards primary market.
