FPI outflow in Apr at Rs 8,000 crore on trade negotiations
New Delhi: Foreign investors have pulled out nearly Rs 8,000 crore from the Indian capital markets so far this month due to 'considerable' volatility in global markets on account of the ongoing trade negotiations and firming up of bond yields.
This comes following an inflow of Rs 11,654 crore in equities last month and an outflow of over Rs 9,000 crore from the debt markets.
Prior to that, foreign portfolio investors (FPIs) had pulled out over Rs 11,674 crore from the country's capital markets (equity and debt) in February.
According to latest depository data, FPIs withdrew a net sum of Rs 4,181 crore from equities and another Rs 3,586 crore from the debt markets during April 2-10. "There is considerable volatility in global markets on account of the ongoing trade negotiations and firming up of bond yields. Domestic political developments, high valuations and application of long term capital gains tax on equities have further dampened sentiment in India," said Ashish Shanker, head investment advisory at Motilal Oswal Private Wealth Management.