Foreign Portfolio Investors (FPIs) Withdraw ₹14,201 Crore in May, Total Outflow Hits ₹1.96 Lakh Crore in 2024

Foreign Portfolio Investors (FPIs) continued their selling spree in the Indian stock market during the month of May. Driven by global economic concerns, foreign investors have withdrawn more than ₹14,201 crore from the market this month alone. According to National Securities Depository Limited (NSDL) data, this marks a significant outflow compared to previous months. Total foreign investment withdrawn from the Indian market so far in 2024 has reached approximately ₹1.96 lakh crore. Experts suggest this number could surpass ₹2 lakh crore if the current trend continues. This trend represents a notable shift from 2023, where foreign investment was significantly higher. Detailed Data & Analysis In January, FPIs sold shares worth ₹35,993 crore. In February, however, they had invested ₹1,539 crore back into the market. March saw the highest monthly investment of the year at ₹35,098 crore, but this momentum did not last. By April, the trend reversed again with a withdrawal of ₹1.17 lakh crore. Similarly, in the first part of May, shares worth ₹30,847 crore have already been sold. Financial analysts and investment experts, such as those from Morningstar Investment, believe the primary reasons for this selling pressure include Concerns over global inflation, Potential changes in interest rate policies, Geopolitical uncertainties.