The withdrawal of foreign investors from the Indian stock market continues unabated. According to reports, Foreign Portfolio Investors (FPIs) have pulled out over Rs 9600 crore so far this month in February. Experts say foreign investors are pulling out given the high valuations of the Indian equity market compared to other emerging markets. 

According to the data, FPIs made a net withdrawal of Rs 28,852 crore in January as well. This was the highest withdrawal in the last seven months. There itself,

Foreign investors made a net investment of Rs 11,119 crore in December 2022 and Rs 36,238 crore in November in the Indian market. Shrikant Chauhan of Kotak Securities says that the withdrawal by FPIs is expected to continue even further as central banks continue to increase interest rates. On the other hand, Himanshu Srivastava, co-director of Morningstar India, said, this trend of capital withdrawal will continue until there is more clarity on the Adani case, more stability in the market and FPIs see more concrete signs of improvement in the Indian economy. Come He said that the comparatively higher valuation of Indian markets is also a major reason for this withdrawal of foreign capital.

Capital being invested in Taiwan, D.Korea being deployed in markets such as South Korea and Japan. After removing the strict lockdown in China, foreign investors are again getting attracted towards it.