Financial stocks account for 82 per cent of the total selling by foreign investors. Foreigners have sold financial shares worth Rs 37,500 crore in 6 months.
The selling of foreign investors in the Indian markets for almost three months is being tied to banking-financial or financial stocks. It is definitely difficult to believe after hearing this, but the figures released by NSDL are telling this. In fact, banking-financial stocks have contributed the most to the selling of foreign investors issued in the Indian markets for the last three months. What is the biggest reason for the displeasure of foreign investors with financial stocks, let me tell you.
Record selling of foreigners in financial stocks
From October 15 to December 15, $330 million has been sold. Foreigners have sold ₹ 24,600 crore in financial shares.
Financial stocks account for 82 per cent of the total selling by foreign investors. Foreigners have sold financial shares worth Rs 37,500 crore in 6 months. Foreigners have sold a total of ₹33,800 crore in the December quarter i.e. from October to December.
A look at the banking sector
If we look at the figures, Bank Nifty has broken almost 17 percent from the record high. At the same time, Nifty Financial Services has come down 15 percent from its highest level. Apart from this, the Nifty has fallen by about 10 percent from record highs.
Why are foreign investors doing this?
Experts say that the new infection of Corona, Omicron, has raised concerns about stopping the pace of economic recovery.
Financial stocks are considered a mirror of economic recovery.
Experts have reduced the outlook for the banking-financial sector. If put in simple words, concerns have been expressed about income and profits in the coming days.
Expensive valuations are also a reason for selling in stocks. Fears of a reduction in GDP growth have reduced the outlook. At the same time, the record trade deficit i.e. more imports and less exports is increasing the concerns of investors. Apart from this, rising inflation has added fuel to this fire.
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