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FPIs in selling mode, take out Rs 6,000 crore in September
Foreign investors have pulled out nearly Rs 6,000 crore from capital markets in this month so far on account of various global and domestic factors.
New Delhi: Foreign investors have pulled out nearly Rs 6,000 crore from capital markets in this month so far on account of various global and domestic factors.
The equity market has seen steeper outflows compared to debt markets.
Outflows are unlikely to continue as the US Federal Reserve maintained status quo on interest rate, which may give the Reserve Bank of India some headroom to lower its key lending rate, according to some analysts.
The latest pull-out follows a record net outflow of Rs 17,428 crore from equities last month. That was the highest net outflow by foreign portfolio investors (FPIs) in a single month since 1997.
The segregated data prior to 1997 was not available.
FPIs have withdrawn a net of Rs 4,600 crore from equities, while they pulled out Rs 1,262 crore from the debt markets during September 1-18, according to depositories data for this month.
Market experts attributed huge outflows to sustained global risk-off trend along with concerns over economic slowdown in China and currency devaluation by the world's most populated country.
Besides, China's weak PMI and lower GDP growth dampened sentiment in India.
Since the beginning of the year, FPIs have made a net investment of Rs 22,922 crore in equities and Rs 37,442 crore in debt markets.