Foreign investors have withdrawn Rs 7500 crore so far in October, know how the market will move?

FPI Foreign Portfolio Investors

Foreign investors have withdrawn 7458 crores from the Indian stock market so far in October. Earlier in September, FPIs had withdrawn a total of 7624 crores. Foreign investors play a major role in the sentiment of the Indian market. Last week, the Nifty recorded a fall of 0.74 percent and closed at the level of 17185. Bank Nifty closed at 39305, down 0.33 percent. Anuj Gupta, Vice President, IIFL Securities, says that the geopolitical tension and global economic slowdown are showing a negative impact on the market sentiment. Federal Reserve’s aggressive stance on interest rate hike will continue for now, which will increase the pressure on liquidity. This can also have an effect on the economic slowdown.

Foreign Portfolio Investors (FPIs) have withdrawn Rs 1.76 lakh crore from the Indian market so far in 2022. Shrikant Chauhan, Head of Equity Research, Kotak Securities said that FPI inflows may remain volatile in the coming months due to factors like geopolitical situation and inflation. Earlier, FPIs had made a net investment of Rs 51,200 crore in August and about Rs 5,000 crore in July. Prior to July, foreign investors had been net sellers for nine consecutive months since October last year.

Himanshu Srivastava, associate director-manager research at Morningstar India, said the recent exits by FPIs were largely due to concerns over tightening of monetary policy by central banks in the US and other countries, which could impact global economic growth. . VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said the main reason for the FPI sell-off was the continued appreciation in the dollar and it is anticipated that the dollar will continue to strengthen in the times to come.

Market move will be decided by quarterly results

The direction of domestic stock markets will be decided by the quarterly results and global trends to be announced this week. Apart from this, the flow of foreign capital will also play an important role in deciding the direction of the market. Analysts have expressed this opinion. He said volatility in rupee and trend in international oil benchmark Brent crude will also affect the business. Santosh Meena, Head of Research, Swastika Investment Limited said that the market will be watching the Q2 results and global trends. The second quarter results of many financial companies and cement companies are going to be released this week. There is a lot of volatility in the global markets which can have an impact on our market as well.

Market mood may remain positive this week

Anuj Gupta, Expert of IIFL Securities said that this week there is support for Nifty at 16800, after which the second support is at the level of 16550. The first barrier is at 17350 and the second is at the level of 17700. With strong quarterly results, the market sentiment will be positive. Technically, if Nifty breaks the level of 17350, then it will move towards 17700. If Bank Nifty remains above 39800 then it will move towards 40500. Technically, the trend for this week is positive.