- India,
- 10-Mar-2025 06:00 AM IST
- (Updated 09-Mar-2025 11:26 PM IST)
Share Market News: Last week, the Indian stock market registered some stability, but relief for investors is still far away. After seeing the biggest decline in 30 years recently, the market tried to stop the decline, but in the meantime a huge amount of capital has exited the market. In the first week of March itself, foreign portfolio investors (FPIs) withdrew Rs 24,753 crore, which kept the market under pressure.Why the continuous withdrawal of FPIs?The main reason for the withdrawal of foreign portfolio investors is the weak earnings of Indian companies and increasing tension in the global market. The US government's policy of imposing high tariffs on China, Mexico and Canada has made investors cautious. Apart from this, FPIs are also moving away from Indian stocks due to weak results of companies in the domestic market.FPIs withdrew Rs 34,574 crore in February and Rs 78,027 crore in January. Since the beginning of 2025, FPIs have withdrawn a total of Rs 1.37 lakh crore from the Indian market.Impact of continuous selling by FPIs
- Market volatility: Due to continuous withdrawals by FPIs, there is a lot of volatility in the market. Investors' confidence is starting to waver.
- Pressure on rupee: Withdrawal of money by foreign investors puts pressure on the value of rupee, which can make imports expensive.
- Impact on small and medium industries: Small and medium-sized businesses may face difficulty in raising capital, which will affect their growth.
- Impact on banking and financial sector: Due to continuous selling, companies in the banking and financial sector may face difficulties.