Why Foreign Institutional Investors (FIIs) are selling? 1. India's valuation: Mildly expensive based on Forward PE and Forward PEG ratios. 2. Alternative investment options: China is emerging as a viable alternative, capable of absorbing significant investments. 3. Economic slowdown: India's consumer-facing sectors are experiencing a slowdown. 4. Monetary policy: RBI's reluctance to cut interest rates, unlike global trends. 5. Decreasing post-tax returns: Affecting both foreign and domestic investors. 6. Profit booking: FIIs are selling to realize gains from previous investments. Key factors contributing to FII outflow include valuation, alternative investment options, economic slowdown, monetary policy, decreasing returns, and profit booking.
Download the medial app to read full posts, comements and news.