Mumbai: The Foreign portfolio investors (FPIs) remained net sellers in the Indian equity market and pulled out Rs 35,506 crore from the Indian capital markets so far in February. FPIs have withdrawn Rs 31,158 crore from equities, Rs 4,467from debt segment. They invested Rs 120 crore in the market. This is the highest since March 2020. In March 2020, FPIS had pulled out Rs 1,18,203 crore.
FPIs have been net sellers for fourth consecutive months. FPIs had pulled out nearly 28,000 crore rupees in January, 30,000 crore rupees in December, 2,500 crore rupees in November and nearly 12,700 rupees in October.
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As per market experts, the US Federal Reserve’s decision to unwind stimulus measure and increase interest rates has increased the pace of withdrawal. Also the Russia-Ukraine war made foreign investors cautious. Reserve Bank of India’s determination to curb high inflation and US Federal Reserve’s commencement of asset tapering after hiking borrowing costs will likely keep equity markets volatile. According to them, the rising crude oil prices and inflation will support the foreign fund outflow.
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