Election Results 2024: FPI net sellers worth ₹12,436.22 crore in the markets: Experts expect near-term volatility

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₹12,436.22 crore in the markets on Tuesday, suggested provisional data on the NSE leading to more than 5% fall in the n]benchmark Nifty-50 index and Sensex.The Investments by Foreign Portfolio Investors (FPI) that turned net sellers of equities in the month on April 2024 are likely to remain uncertain in the near terms, say analysts. The NSDL data shows that while Foreign Portfolio Investors sold ₹8671 crore worth of Equities in the month of April, the intensity of outflows by the Foreign Portfolio Investors had increased during the month of May.

The Foreign Portfolio investors were net sellers of ₹25,586 crore worth of equities in the month of May '2024.Also Read- Britannia share price hits lifetime high despite stock market bloodbathThere remains uncertainty around interest rate cuts by the US Federal Reserve The initial expectations were that the US Federal Reserve will start cutting rates in March'2024 which has continued getting delayed. A stronger dollar and higher treasury yields with expectations of “higher for longer" have meant that investments in the emerging markets became unattractive for the Foreign Portfolio Investors.

Vaibhav Vidwani, Research Analyst, Bonanza Portfolio said that due to uncertainties around the election's outcome, domestic markets plunged today and its a possible that this caused some foreign investors to sell offThe benchmark Nifty 50 index and the Sensex ended 5-6% lower on Tuesday. "Obviously, the way the ongoing election outcome is throwing a surprise will result in some introspection and re-focusing on Foreign Institutional Investors India equity allocation, said Rakesh Parekh, MD and Co-Head, Portfolio Management Services, JM Financial Services LtdAlso Read- Election Results 2024: