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FPIs In Exit Mode, Pull Out $1 Bn From Capital Markets In Nov

By Religare

Overseas investors have pulled out more than USD 1 billion from the Indian capital markets since the beginning of the month due to subdued quarterly earnings and concerns over a possible rate hike by the US Federal Reserve.

The sell-off came after Foreign Portfolio Investor (FPI) inflow in the capital markets (equity and debt) had hit a seven-month high in October.

FPIs In Exit Mode, Pull Out $1 Bn From Capital Markets In Nov
As per the data compiled by the depositories, net outflow in equities stood at Rs 5,713 crore between November 2-19, while it was Rs 2,565 crore from debt, translating into a total of Rs 8,278 crore ($1.26 billion).

Earlier, FPIs had made a net investment of Rs 22,350 crore last month, making it the highest investment by investors since March, when they had poured in Rs 20,723 crore into the Indian market.

The huge inflows during October also reversed the outflows seen during the last two months. FPIs pulled out over Rs 23,000 crore from the capital markets in the last two months (August-September) on fears of an economic slowdown in China, which triggered a global sell-off.

The minutes of latest US Fed meeting showed that it's ready for a December lift-off provided subsequent actions are strongly tied to consistent improvements in the economy, which prompted investors to withdraw money.

Investor mood remained fragile because of disappointing quarterly earnings by blue-chips.

Since the beginning of the year, overseas investors have made a net investment of Rs 21,984 crore in equities and Rs 52,531 crore in debt market.

Read more about: fpis
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