FPIs Pull Out Rs17,696 crores from Markets So Far in Dec

Foreign portfolio investors (FPIs) have pulled out Rs17696 crore from the Indian markets in December so far amid uncertainty due to a new coronavirus strain, Omicron, and expectations of faster tapering by the US Federal Reserve.

According to the depositories data, FPIs took out Rs13470 crore from equities, Rs4066 crore from the debt segment and Rs160 crore from hybrid instruments between December 1-17. In November, FPIs were net sellers to the tune of Rs2521 crore in Indian markets.

There continues to be uncertainties on the global as well as domestic fronts, said Himanshu Srivastava, associate director manager research at Morning star India.

The concerns over the highly transmissible Omicron Variant of coronavirus persist and have impacted global growth outlook, he added. “Also, the economic growth has also been relatively slow, and Indian’s earnings have not grown much,” he added.

If the situation worsens, it could further prompt them to redeem investments from emerging markets like India which are considered to be more prone to turmoil in the global markets. “Since banking constitutes the largest FPI holding, it is Bering the brunt of FPI selling,” VK Vijaya Kumar, chief investments strategist at Goji Financial Services said.  S-ET

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *