September FPI outlow of Rs 21000 crores highest in four months.

Last Updated: Mon, Oct 01, 2018 18:04 hrs
Rupee (PTI Photo)

New Delhi: Provisional data released for the month of September suggests that Foreign portfolio investors squeezed Rs 21,000 crores from capital markets. This is the highest outflow in four months.

Amid costlier crude and widening current account deficit, there has been a net infusion of Rs 5200 crores in equity and debts in September. In July the total investments stood at Rs 2300 crores.

The latest withdrawal comes following a net infusion of close to Rs5,200 crore in the capital markets (both equity and debt) last month and Rs2,300 crore in July.

The latest depository data suggests foreign portfolio investors (FPIs) withdrew a net sum of Rs10,825 crore from equities in September and Rs10,198 crore from the debt market.

This was the highest outflow since May, when FPIs had pulled out Rs29,775 crore. FPIs never fully returned to the Indian equity markets after pulling out net assets worth Rs61,000 crore during the quarter ended June 2018.

Experts have reasoned that this trend could indicate a bit of uncertainty and caution among FPIs when it comes to investing in Indian equity markets.

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