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Fiis records seling: How will the Indian stock market move? Investors will get profits or losses are a lot of hand to foreign investors. Right now, foreign investors are not supporting Dalal Street, which is also clearly seen on the market. In the last 9 crores days, Fiis has sold Rs 27,000 crore from the market. On Thursday, there was a withdrawal of Rs 5,600 crore alone. Let us understand why foreign investors are withdrawing money from the stock market?

What is the reason for Fiis selling?

First quarter result- India's Q1 means weak corporate earnings of the April-June quarter. This time the results of companies were weak with expected, which saw a huge decline in many stocks. The IT index fell 10% in the last one month, while the Nifty Bank index remained stable. The growth of the top 9 private banks in the country was only 2.7%, which shows weak credit demand and slow speed in the economy. Due to this, the trust of the foreigner slightly staggered a little on the Indian stock market

Firm in dollar index- Globally rising dollar index. This week, the dollar index rose by 2.5% to 100, which is the highest level of two months. Strong dollar means that FIIs are taking their investment back to countries with America or other strong currency.

Global tension- Uncertainty related to America's tariff. Vikash Jain of Global Brokerage firm CLSA says that Trump's statements have questioned India's particular situation in which he has been doing business easily with both America and Russia. Trump's policies may threaten India's "safe investment" tag.

Change in FIIS strategy

FIIS has shortened its position in index futures 90%, which breaks the previous record of 89% of January. At the beginning of the August series, his long-to-short ratio fell to 0.11, the lowest level after March 2023. This means that Fiis are expecting a decline in the market. The rollover of the Nifty was also 75.71% in July, which is less than 79.53% in the previous month.

What do experts say?

In the ET report, market expert Sunil Subramaniam has said that there are many reasons behind the selling of FIIS. One is that he had an idea that India would not get benefit in the trade deal. Second, the Chinese market looks attractive in terms of valuation and growth at this time. China's GDP growth is expected to go up to 4.8%. Also, interest rates in the US remain high, as the Federal Reserve is avoiding the matter of cuts in interest rates. However, Subramaniam also see a chance in this. According to him, Domestic Institutional Investors (DIIS) have a lot of cash reserve. Such a decline can be a good opportunity for them to shop.

What can happen next?

Looking at the previous figures, when the long-to-short ratio of Fiis goes below 0.15, the Nifty in the next series climbs more than 7% on an average. This means that FIIS can shop to cover its short position, which increases the expectation of recovery in the market. At the same time, some experts rely on India's long-term growth. He says that as soon as the Federal Reserve reduces interest rates, Fiis will return.