FPIs Trigger Market Volatility with Document Sell-Off
Mumbai– Foreign Portfolio Financiers (FPIs) carried out a historic sell-off in March, withdrawing approximately 1 18 lakh crore from Indian stock markets, leading to increased market volatility.
- Discharge: 1 18 lakh crore (USD 12 7 billion) taken out in March.
- Devaluation: Rupee damaged, briefly breaching 95 versus the USD.
- Market Effect: Sensex and Nifty dropped around 14 – 16 %.
- DII Assistance: Residential Institutional Capitalists (DIIs) cushioned the loss with acquisitions of 1 3 lakh crore.
- Geopolitical Factors: Heightened dispute in West Asia and rising global unpredictability fueled the sell-off.