The way foreign investors are selling in the Indian share market  , it seems that they will leave the market only after packing up! This is what the selling has been like in January so far. Foreign investors have withdrawn Rs 64,156 crore so far this month. Now the question arises that why are foreign investors continuously withdrawing money. If you are looking for the reason, then we will tell you. Actually, this is happening due to the big fall in the value of rupee against the dollar, increase in US bond yield and weak quarterly results of companies. Depository data shows that foreign portfolio investors (FPIs) had invested Rs 15,446 crore in December. 

Foreign investors under pressure due to continuous fall in rupee

Himanshu Srivastava, Joint Director-Research Manager, Morningstar Investment Advisors India, said that the continuous decline in the Indian rupee has put a lot of pressure on foreign investors, due to which they are withdrawing money from the Indian equity markets. He said that apart from this, the high valuation of Indian stock markets despite the recent decline, relatively low quarterly results and macroeconomic adversities is making investors cautious. Apart from this, Donald Trump's unpredictable policies have also prompted investors to take cautious steps. In such a situation, investors are forced to stay away from risky investment avenues. According to the data, FPIs have sold shares worth Rs 64,156 crore from Indian equities so far this month (till January 24). 

Continuous selling except for January 2 

FPIs sold on all days except January 2 this month. VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said that the continued strength of the dollar and the rise in US bond yields have been the main factors promoting FII selling. As long as the dollar index remains above 108 and the 10-year US bond yield remains above 4.5 percent, the selling is expected to continue. The financial sector is particularly suffering due to FPI selling. On the other hand, some buying was seen in the IT sector.