FPIs pull out ₹18,856 cr from Indian markets in February so far
The Hindu
Investors are exiting amid the geopolitical tensions and chances of a rate hike by U.S. Federal Reserve
Foreign portfolio investors (FPIs) have withdrawn a net ₹18,856 crore from the Indian markets in February so far amid geopolitical tensions and chances of a rate hike by the U.S. Federal Reserve.
As per depositories data, overseas investors took out ₹15,342 crore from equities and ₹3,629 crore from the bonds market between February 1-18. At the same time, they invested ₹115 crore in hybrid instruments.
This translates into a net outflow of ₹18,856 crore during the period under review.
This is the fifth consecutive month of foreign fund outflows.
"Geopolitical tension and chances of rate hike by US Fed has triggered outflows from FPIs in the recent times from the Indian equity markets. They sharply increased the pace of selling after the US Fed indicated an end of the ultra-loose monetary policy regime," said Himanshu Srivastava, Associate Director - Manager Research, Morningstar India.
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