Foreign Portfolio Investors have taken out Rs 14 crore from the markets

During the first week of this month, around Rs 14,800 crore was pulled out of Indian stocks by foreign investors, due to the outcomes of India's Lok Sabha election and the appealing valuations of Chinese stocks.

The flow of money reversed after a net outflow of Rs 25,586 crore in May due to election worries and over Rs 8,700 crore in April because of concerns about changes in India's tax agreement with Mauritius and a continuous increase in US bond yields. Before that, data from the depositories revealed that Foreign Portfolio Investors (FPIs) invested Rs 35,098 crore in March and Rs 1,539 crore in February, but withdrew Rs 25,743 crore in January.

According to the sources,  FPI skepticism towards Chinese stocks has ended and there is now a growing interest in investing in Chinese stocks on the Hong Kong Exchange due to the appealing valuations of these stocks.

Analysts stated that this week, market movement will be influenced by the US Fed interest rate decision, domestic inflation data, and global trends, as the Lok Sabha elections outcome and the RBI policy decision are now in the past.

Investors experienced a volatile week as markets fluctuated dramatically before ending with significant increases.

In day trade on Friday, the BSE Sensex surged to a new peak of 76,795.31, showing a 2.29 % increase with a jump of 1,720.8 points in the 30-share index. The index concluded at an all-time high of 76,693.36, increasing by 1,618.85 points, which is equivalent to 2.16 %.