Foreign portfolio investors withdrew Rs $ 1.27 billion from Indian markets after Union Budget

Mumbai: Foreign portfolio investors (FPIs) pulled out nearly $ 1.27 billion (around Rs 10,710 crore) from the Indian stock market in the three days after the Union Budget. The Union Budget was presented on July 23. In the budget, the Union  government raised taxes on derivatives trades and on capital gains from equity investments.

According to stock exchange data, FPIs sold equities worth Rs 2,975 crore on July 23 when the Budget was announced and another Rs 5,130 crore on July 24. They withdrew Rs 2,605 crore on Thursday. During the same time, domestic institutional investors bought stocks worth around Rs 6,900 crore since July 23. Ahead of the Union Budget, between July 12 and 22, foreign portfolio investors had bought equities worth around Rs 18,000 crore.

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Foreign institutional investors (FII) or Foreign portfolio investors (FPI) are those who invest in the financial assets of a country while not being part of it. On the other hand, Domestic Institutional Investors (DII) are those who invest in the country they are living in. Both types of investors can impact the economy’s net investment flows.