Foreign Investors Pull Out Rs 3,600 Crore From Equities In Nine Sessions

Foreign investors pulled out more than Rs 3,600 crore from the Indian equity markets in the last nine trading sessions, turning net sellers so far this month.

This comes following a cumulative net inflow of Rs 8,584 crore in the equity markets by foreign portfolio investors in November and December.

According to data available with the depositories, FPIs withdrew a net amount of Rs 3,677 crore from equities during Jan. 01-12. However, they pumped in a net sum of Rs 1,872 crore in the debt markets during the period under review.

“While it may not be a good start for the year, its too early to draw any conclusion. However, at best what it indicates is that FPIs are continuing with their cautious/wait and watch stance towards India,” said Himanshu Srivastava, senior analyst manager research, Morningstar Investment Adviser India.

“Going ahead, the focus would be on the budget, country’s progress on the economic growth front as well as the general election. Other factors such as movement in crude prices and currency, which would have a bearing on the country’s macro-environment; and worries over global trade war will continue to guide the direction of FPI flows,” he said.

Harsh Jain, COO at Groww, an online mutual funds investment platform, said 2019 is likely to see a lot of volatility because of rate hikes and dollar instability, but the Indian markets may not be as volatile as the developed ones despite short-term political uncertainty.

“India offers better investment opportunities due to consistent growth, supportive global factors and attract valuations. We should expect positive inflow in coming months,” he added.