FPIs pull record $2 bn on valuations, weak rupee

Foreign investors moved record sums of money from selling Indian shares in the secondary or cash market to other, better performing countries, as India’s market maintains lofty valuations and the rupee continues to depreciate amid tariff tensions with the US.

- Ram Sahgal

Foreign portfolio investors or FPIs sold cash shares worth 22.02 lakh crore in the calendar year through 1 October, per National Securities Depository Ltd (NSDL). In the same period in 2022, FPI cash outflows were at 21.46 lakh crore, the second highest ina year, and 21.21 lakh crore last year.

Analysts say the heavy outflows could keep market gains in check until India and the US sign up on a bilateral trade deal (BTA), which has been in the works for several months now.