Mumbai: Foreign portfolio investors withdrew around Rs 1.22 lakh crore from the Indian equity markets this year. This is the highest-ever yearly net outflow of foreign funds. The previous high yearly net outflow of foreign funds was Rs 53,000 crore reported in 2008.
As per market experts, global monetary tightening, rising crude oil prices, rising commodity prices along with Russia and Ukraine conflict led to an exodus of foreign money in 2022. This was the worst year for FPIs in terms of flow and withdrawal from equities comes following a net investment in the past 3 preceding years.
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Till December 28, foreign portfolio investors (FPIs) have made a net withdrawal of Rs 1.21 lakh crore (nearly $16.5 billion) from the Indian equity markets and net pull out of around Rs 16,600 crore ($ 2 billion) from the debt market.
FPIs made a net infusion of Rs 25,752 crore in equities in 2021, Rs 1.7 lakh crore in 2020, and Rs 1.01 lakh crore in 2019. A net outflow was last seen in 2018 (Rs 33,000 crore), while 2022 would be only the fifth year in the history of FPIs when they have been net sellers of Indian equities — the other three being 2011 (Rs 27,000 crore), 2008 (Rs 53,000 crore) and 1998 (Rs 740 crore).
In the debt market, FPIs continued their sell-off for the third straight year with a net outflow of Rs Rs 16,600 crore in 2022. They had made a net withdrawal of Rs 10,359 crore in 2021 and of Rs 1.05 lakh crore in 2020.
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