In Selling Spree, Foreign Investors Pull Out Rs 2,881 Crore in Two Trading Sessions in August
Prior to this, FPIs withdrew a net Rs 2,985.88 crore from the Indian capital markets (both equity and debt) during July 1-31.
Representative Image (Image: Reuters)
New Delhi: Continuing their selling spree, foreign investors have withdrawn a net amount of Rs 2,881 crore from the Indian capital markets in the first two sessions of August on account of domestic as well as global headwinds.
According to latest depositories data, foreign portfolio investors (FPIs) pulled out a net sum of Rs 2,632.58 crore from equities and Rs 248.52 crore from the debt segment during August 1-2, taking the cumulative net outflow to Rs 2,881.10 crore.
Prior to this, FPIs withdrew a net Rs 2,985.88 crore from the Indian capital markets (both equity and debt) during July 1-31. "FPIs withdrew more than they invested as the US-China trade war has started brewing again which is not helping investors' sentiments," said Harsh Jain, COO at Groww.
Further, "the announcement of rate cuts by Fed in the US has evoked confused reactions and added to the uncertainty," he added.
FPIs were net buyers in the Indian capital markets in the first half of 2019, barring January. They infused a net Rs 10,384.54 crore in June, Rs 9,031.15 crore in May, Rs 16,093 crore in April, Rs 45,981 crore in March and Rs 11,182 crore in February.
However, the trend reversed in July after the announcement of higher tax on FPIs registered as trusts and association of persons in the Union Budget for 2019-20, experts said. The sentiments have also been impacted by slowdown in the economy, weak quarterly earnings and sub-par monsoon, among other factors, they added.
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