Mumbai: The foreign portfolio investors (FPIs) remained net sellers in the Indian equity market for 8th month in a row. FPIs withdrew Rs 39,993 crore from equities in May. Thus, the total outflow from equities reached at Rs 1.69 lakh crore so far in 2022. Foreign investors have been taking out money from Indian equities in the last eight months from October 2021 to May 2022, withdrawing a massive net amount of Rs 2.07 lakh crore.
As per the market experts, he fears of an aggressive rate hike by US Federal Reserve influenced the investors. Also, the rising inflation, tightening of monetary policy by central banks and Russia-Ukraine war also influenced the FPIs. This massive outflow of foreign fund is the major factor for the weakness in the Indian market.
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FPIs also withdrew a net amount of about Rs 5,505 crore from the debt market during May. They have been incessantly withdrawing money from the debt side since February.
Apart from India, other emerging markets, including Taiwan, South Korea, Indonesia and the Philippines, witnessed outflow in the month of May.
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